PHAC Services, Inc. v. Seaways Intern., Inc.
403 So. 2d 1199 (1981)
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Rule of Law:
Under the Louisiana Civil Code prior to its 1979 revision, a large, free-standing structure designed for human habitation is classified as a 'building' and is therefore an 'immovable by nature,' making it subject to the liens provided by the Private Works Act, regardless of the owner's intent to move it or that it is not attached to the soil.
Facts:
- Pennzoil Company contracted with Seaways International, Inc. to construct a three-story steel living quarters unit.
- The unit was built on blocks at a construction site in St. Mary Parish, Louisiana.
- The unit was at all times intended to be transported and attached to a specific offshore drilling platform located in the Gulf of Mexico, off the coast of Texas.
- Seaways subcontracted with P. H. A. C. Services, Inc. for the installation of plumbing, heating, and air conditioning.
- Seaways also subcontracted with Acoustical Spray Insulators, Inc. to provide labor and acoustical materials for the unit.
- P. H. A. C. and Acoustical completed their work in accordance with their subcontracts.
- Seaways failed to pay P. H. A. C. and Acoustical for their labor and materials.
- Pennzoil had not recorded its contract with Seaways, nor had it required Seaways to furnish a bond.
Procedural Posture:
- P. H. A. C. Services, Inc. and Acoustical Spray Insulators, Inc. each filed suit against Seaways International, Inc. and Pennzoil to enforce liens; the trial court consolidated the cases.
- The trial court ruled that the only privilege available to the plaintiffs was under the Oil Well Lien Act, R.S. 9:4861 et seq.
- The plaintiffs (P. H. A. C. and Acoustical) appealed to the Louisiana Court of Appeal, First Circuit.
- The Court of Appeal reversed, holding that the Private Works Act, R.S. 9:4801 et seq., was the only applicable statute.
- The Louisiana Supreme Court granted writs of certiorari upon the applications of all parties.
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Issue:
Is a three-story, steel living quarters unit, constructed on blocks on land with the intention of being moved to an offshore drilling platform, considered 'immovable property' for the purposes of applying Louisiana's Private Works Act?
Opinions:
Majority - Chief Justice Dixon
Yes. A three-story, steel living quarters unit is a 'building' and therefore an 'immovable by nature' under the applicable version of the Louisiana Civil Code, making it subject to the liens of the Private Works Act. The court first determined that the Oil Well Lien Act (R.S. 9:4861) does not apply, as it appears to govern wells and leases within Louisiana, and the unit was destined for a location outside the state. The court then analyzed the Private Works Act (R.S. 9:4801), which applies to 'immovable property.' Under the controlling pre-1979 Civil Code (Art. 464), 'buildings or other constructions, whether they have their foundations in the soil or not, are immovable by their nature.' The court concluded the substantial, three-story steel structure designed to house workers is unequivocally a 'building.' The owner's intent to move the structure and the fact that it was built on blocks are irrelevant to its classification as an immovable by nature, a status fixed by law and distinct from immovables by destination, whose status can depend on the owner's intent. Therefore, as an immovable, the unit is subject to the privileges granted by the Private Works Act.
Concurring - Justice Marcus
Yes. The living quarters unit was an immovable by its nature. The applicable law, Louisiana Civil Code article 464, explicitly stated that 'buildings or other constructions, whether they have their foundations in the soil or not, are immovable by their nature.' The unit was clearly a building whose foundation was not in the soil, fitting the codal definition precisely. Therefore, it was an immovable, and the Private Works Act applies.
Analysis:
This decision clarifies the legal classification of large, prefabricated, and transportable structures under Louisiana's former property law regime. It establishes that a structure's objective physical characteristics and function as a 'building' determine its status as an immovable by nature, prevailing over the owner's subjective intent to move it. This ruling provides significant protection for contractors and suppliers in the modular construction industry by affirming their lien rights under the Private Works Act, ensuring the statute's purpose to protect laborers is not frustrated by modern construction methods. Although the Civil Code has since been revised, the case remains an important precedent for interpreting property classifications and lien statutes.
