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Worley v. Cowper Constr. Co. Inc.

A landlord was not responsible for paying a subcontractor who provided labor and materials in connection with improvements made by a commercial tenant for the tenant's own benefit.

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Rick Worley was a subcontractor on a project to improve property leased by EIG Covered Bridge, LLC., to Bi-Lo, Inc. Worley brought this suit because the project’s general contractor, Cowper Construction Company, failed to pay for $112,898.80 in labor and materials supplied by Worley. Worley seeks a money judgment against Cowper and imposition of a special lien against EIG’s interest in the property. Worley appeals the trial court’s grant of EIG’s motion for summary judgment. Because it is undisputed that EIG’s and Bi-Lo’s lease agreement required Bi-Lo to pay for the improvements to the property, the trial court did not err in ruling that no lien attached to EIG’s reversionary interest.

EIG owns a shopping center. In 1985, EIG agreed to lease a space in the shopping center to Bi-Lo. The lease agreement provides for fixed annual rent in a specified dollar amount, and for an annual bonus rental payment if net receipts from Bi-Lo’s business exceed the fixed annual rental for the lease year. In 1999, the parties expanded the lease to include adjacent space. An amendment to the lease obligated Bi-Lo to renovate and remodel the adjacent premises at its sole cost and expense. EIG was given the right to review and approve work plans and specifications.

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