E. W. Hayek v. Western Steel Company

This appeal involves the construction of the Mechanics and Materialmens Lien Act, particularly Articles 5452 and 5469. The Act, among other things, provides statutory liens for those who labor or furnish materials for the construction or repair of any house, building or improvement. Respondents, as plaintiffs below, sued the Petitioner owners for the unpaid balance on steel and concrete furnished to Petitioners foundation contractor, claiming that Petitioners are liable therefor under Article 5469. It is unquestioned that under Article 5469 an owner who makes a general contract covering the entire construction of a house or other building must, for the protection of laborers and materialmen, retain in his hands for 30 days after the work is completed ten per cent (10 percent) of the contract price or value of the house or other building. If the owner fails to retain such fund, then all complying claimants "shall share ratably among themselves, with preference to artisans and mechanics . . ., liens at least to the extent of the aforesaid fund of ten per-cent (10 percent) which should have been retained as against the house, building . . . or improvement and all of its properties . . ."