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Morrell Masonry Supply Inc. v. Lupe's Shenandoah Reserve LLC

As a derivative claimant seeking to recover on invoices for materials provided to a subcontractor on a commercial construction contract, the appellant, Morrell Masonry Supply Inc., brought statutory fund-trapping and retainage claims against the owner, Lupe's Shenandoah Reserve LLC, and its insurer. Because the statute that creates the rights of derivative suppliers requires timely notice to perfect a lien, a failure to provide notice in accordance with the statute precludes recovery. The trial court's judgment is affirmed. Beaumont Court of Appeals, No. 09-11-00284-CV, 03-22-2012.

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OPINION

This case requires us to decide whether a materialman to a subcontractor must give notice to the original contractor to perfect a lien and to recover on fund-trapping and retainage claims against the landowner. Because the statute that creates the rights of derivative suppliers requires timely notice to perfect a lien, we hold that a failure to provide notice in accordance with the statute precludes recovery.

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