Larson Concrete Co. v. Stroschein

The majority opinion holds the supplier must apply payments from the contractor to materials furnished a particular property for the owner’s benefit. This greatly exposes only open-account suppliers and diminishes their protection under the mechanic’s lien statute. See, SDCL ch. 44-9. Thus, open-account suppliers will be required to either: 1) complete all necessary steps delineated in SDCL ch. 44-9 to perfect their mechanic’s liens and inquire for application the source of each payment received from contractors or 2) utilize the procedures outlined in the direct billing statute. See, SDCL…