Iowa law provides for numerous types of liens. For one particular type of lien, when specified services are rendered and the provider of those services is not timely paid, a lien may be asserted to secure payment. This case involved a mechanic’s lien for unpaid plumbing services (including the cost of materials used in the job).
In this case, a plumber sought to recover the full value for the work done on a home remodeling project. The parties communicated via faxes with respect to the project and, based on those communications, the plumber estimated that the project would cost slightly over $5,000. Later, the plumber inspected the site and determined that re-engineering would be necessary. After the project was complete, the plumber sent the homeowners a revised final bill which included the additional labor and material charges. That brought the bill to over $7,500, and the homeowners refused to pay. In return, the plumber filed an action to foreclose a mechanic’s lien for his services rendered. The trial court agreed with the plumber, awarding full payment as well as attorney’s fees and costs. The homeowners appealed, claiming that: (1) the trial court erred in finding an express contract term for price did not exist; (2) the trial court erred in finding that the homeowners owed interest on the judgment; (3) and the trial court erred in ordering payment on the plumber’s attorney fees.
The appellate court affirmed the trial court’s judgment that the homeowner’s had promised to pay reasonable compensation, and held that the trial court had the authority to determine a reasonable value for materials and labor in the absence of an express agreement on price. As for interest, the court held that the billing statement could not be read to include a finance charge because the homeowners were not properly notified as required by Iowa law (Iowa Code §535.11 (2)(b)). But, the appellate court held that the plumber was nevertheless entitled to interest under Iowa Code §535.2 (1)(b). In addition, the court upheld the trial court’s award of attorney fees. Zahn v. Scholl, No. 7-610/06-1964, 2007 Iowa App. LEXIS 1275 (Iowa Ct. App. Dec. 12, 2007).