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Mustang Tractor & Equipment Co. v. Hartford Accident and Indemnity Co.

Because the omission of the date and method by which notices were sent constitutes a mere technical error, and because there is no risk that anyone was misled to his prejudice as a result of such omission, Mustang's lien affidavits substantially complied with the Property Code. Fort Worth Court of Appeals, No. 03-07-00468-CV

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OPINION

Mustang Tractor & Equipment Company and Mustang Rental Services, Inc., (collectively, “Mustang”) appeal the trial court’s order granting the motion for summary judgment filed by Hartford Accident and Indemnity Company, Hartford Casualty Insurance Company (collectively, “Hartford”), and White-Spunner Construction, Inc. (“White-Spunner”), to remove four materialman’s liens totaling $115,720.03 that had been filed by Mustang. Hartford and White-Spunner contend that Mustang, in preparing the lien affidavits, failed to comply with the requirements of the property code. Specifically, they argue that the lien affidavits were invalid due to the omission of information regarding when and how pre-lien notice had been provided to the property owner. See Tex. Prop. Code Ann. § 53.054(a)(8) (West 2007). In a single issue on appeal, Mustang asserts that the district court, in determining that omission of the information rendered the liens invalid, erroneously held Mustang to a strict-compliance standard in executing the lien affidavits, rather than the required standard of substantial compliance. We sustain Mustang’s issue and reverse the order granting summary judgment.

BACKGROUND

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