AI Generated Opinion Summaries

This summary was computer-generated without any editorial revision. It is not official, has not been checked for accuracy, and is NOT citable.

Facts

• Solsbury Hill, LLC, doing business as Neumark Irrigation, supplied irrigation materials to a subcontractor for a public works project involving the widening of Unser Boulevard, which included installing an irrigation system. The City of Rio Rancho entered into a construction contract with Salls Brothers Construction, Inc. for the project, and Liberty Mutual Insurance Company provided a payment bond. Neumark was not paid for certain materials supplied for the project and sought to enforce its claim of lien against Liberty Mutual's surety bond under New Mexico's Little Miller Act.

Procedural History

• District Court of Bernalillo County: Entered judgment against Liberty Mutual in the amount of $42,321.29, plus prejudgment interest at 18% per annum, based on the open account credit agreements between the subcontractor and Neumark.

Parties' Submissions

• Plaintiff/Appellee and Cross-Appellant (Neumark): Argued that it was entitled to recover its claim for unpaid invoices for material supplied, including prejudgment and post-judgment interest at the rate of 18%, and attorney fees based on the credit agreements and the provisions of the Little Miller Act.
• Defendant/Appellant and Cross-Appellee (Liberty Mutual Insurance Company): Contended that Neumark failed to prove actual delivery and incorporation of the material into the project, which are essential for recovery under the bond. Liberty Mutual also argued that Neumark did not comply with the Act’s notice requirements and contested the awarding of prejudgment interest and attorney fees.

Legal Issues

• Whether Neumark was entitled to recover under Liberty Mutual's surety bond for materials supplied to a subcontractor on a public works project.
• Whether Neumark complied with the notice requirements of the Little Miller Act.
• Whether Neumark was entitled to prejudgment interest, post-judgment interest at the rate of 18%, and attorney fees.

Disposition

• The Court of Appeals held in favor of Neumark on all issues, reversing the district court’s determinations against Neumark on attorney fees and post-judgment interest and affirming on all other issues. The case was remanded for further proceedings regarding the amount of reasonable attorney fees to be awarded to Neumark.

Reasons

• Per Jonathan B. Sutin, with concurrence from Judges Cynthia A. Fry and Timothy L. Garcia, the court found that Neumark substantially complied with the notice requirements of the Little Miller Act and was entitled to recover for the materials supplied. The court rejected Liberty Mutual's contention that Neumark needed to prove actual delivery and incorporation of the materials into the project, emphasizing a liberal construction of the Act in favor of claimants. The court also held that Neumark was entitled to prejudgment and post-judgment interest at the rate agreed upon in the credit agreements with the subcontractor and that attorney fees were recoverable under the Act when the contract between the subcontractor and supplier provided for such recovery. The court's decision was based on the interpretation of the Little Miller Act, relevant case law, and the contracts involved.