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Date: 09-02-2015

Case Style: Houchin Electric Company, Inc. v. Cylx Corporation, aka Cylx Corp., Pheland Lucas, and Cylx Engineer and Construction

Case Number: CJ-2013-1330

Judge: Daman H. Cantrell

Court: District Court, Tulsa County, Oklahoma

Plaintiff's Attorney: Andy Hartman and Jack Moore

Defendant's Attorney: Jim McCann

Description: Tulsa, OK - Houchin Electric Company, Inc. sued Cylx Corporation, aka Cylx Corp., Pheland Lucas, and Cylx Engineer and Construction on a breach of contract indebtedness theory claiming:

1. CYLX was, on March 30, 2009, the owner in fee simple of the real property whose legal description is:
Lot Thirty-Eight (38), Block Three (3), THE ESTATES OF GRAYSTONE II, a
Subdivision of a part of the North Half of the Southwest Quarter (N/2 SW/4) of
Section Thirty-Five (35), Township Eighteen (18) North, Range Thirteen (13) East,
City of Bixby, Tulsa County, State of Oklahoma, according to the Plat No. 5124.
a/k/a 6831 E. 116 Street South, Bixby, Oklahoma 74008.
2. On or about March 30, 2009, Houchin entered into a contract with CYLX under which Houchin agreed to furnish labor and materials for the improvement of the real property.
3. On or about August 19, 2010, Houchin last provided labor and materials and
completed performance of the contract. 4. On or about August 25, 2010, and again on or about November 9, 2010, Flouchin demanded that CYLX pay the outstanding balance totaling $50,601.42 for the labor and materials furnished under the contract, but CYLX has failed to pay the balance due.
5. Plaintiff performed all conditions precedent to recover under the contract and has not excused the breach of contract by CYLX.
6. As a result of the breach of contract by CYLX, Houchin has sustained damages in the sum of $50,601.42.
7. In the alternative, Houchin has performed valuable services for CYLX by furnishing labor and materials in connection with improvement of the real property. CYLX has benefited from the work of Houchin, and flouchin is entitled to reasonable compensation for all work performed and materials provided. Houchin is, therefore, entitled to judgment against CYLX in the amount of $50,601.42, plus interest, court costs and attorneys’ fees.
8. On December 7,2010, Houchin filed a mechanic’s or materialmen’s lien statement with the County Clerk of Tulsa County. A copy of the mechanic’s or materialmen’s lien statement, recorded as Material or Mechanic’s Lien No, 2010017059 in the records of the Tulsa County Clerk, is attached hereto as Exhibit A.
9. On June 17, 2011, pursuant to 42 OS. § 147.1, CYLX and/or Lucas and/or CYLX Engineering & Construction deposited with the Tulsa County Clerk the sum of $63,251.77 (the “Cash Deposit”), thereby discharging Houchin’s lien claim and releasing the lien of record. A copy of the Notice of Discharge and Release of Lien filed with the Tulsa County Clerk and recorded as Document No. 2010017059 is attached hereto as Exhibit B.
10. Houchin filed a Petition to Foreclose Mechanic’s Lien on July 6,2011, in Case No. CJ-201 1-3720.
11. On January 11,2013, the Court dismissed Case No. CJ-201 1-3720 without prejudice to any party.
12. Despite the dismissal of Case No. CJ-201 1-3720, the Cash Deposit stands liable for payment of such principal, interest, court costs and attorney fees as are awarded to Houchin herein.

Outcome: c)
JOURNAL ENTRY OF JUDGMENT
Following the conclusion of a three (3) day, non-Jury trial to the bench” yhichegan December 9, 2014 and concluded on December 11, 2014, the Court requested that PlainTf and Defendants each submit proposed findings of fact and conclusions of law to the Court for its consideration not later than March 10, 2015. Each of Plaintiff, Houchin Electric Co., Inc., and Defendants, CYLX Corporation a/k/a CYLX Corp., Pheland Lucas, and CYLX Engineering and Construction, submitted their respective proposed findings of fact and conclusions of law on March 10, 2015, and the Court, following consideration of all of the pleadings submitted, the testimony and evidence at trial, the proposed findings of fact and conclusions of law submitted by the parties, and all other matters pertinent to this decision, entered an Order of its own Findings of Fact and Conclusions of Law After Non Jury Trial, which Order was filed on September 8, 2015. The Court’s September 8, 2015 Findings of Fact and Conclusions of Law After Non Jury Trial are expressly incorporated herein by reference. In accordance with the September 8, 2015 Order and Findings of Fact and Conclusions of Law After Non Jury Trial entered by the Court, the Court enters the following Judgment in this matter, and further enters
the Orders that follow:
IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that judgment shall be and is hereby entered in favor of Defendants, CYLX Corporation a/k/a CYLX Corp., Pheland Lucas, and CYLX Engineering and Construction, and against Plaintiff, Houchin Electric Co., Inc., with respect to each of Plaintiffs claims for breach of contract, quantum meruit, and foreclosure of mechanic’s and materialmen lien as requested by Plaintiff in the Pre-Trial Conference Order.
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that judgment shall be and is hereby entered in favor of Defendant, CYLX Corporation a/k/a CYLX Corp., and against Plaintiff, Houchin Electric Co., Inc., in the principal sum of $11,090.01, with respect to Defendants’ counterclaims against Plaintiff for breach of contract, discharge of mechanic and materialmen lien, and release of cash bond as requested by Defendants in the Pre-Trial Conference Order.
IT IS FURTHER ORIDERED, ADJUDGED, AND DECREED that the Mechanic or Materialmen Lien filed by Plaintiff, Houchin Electric Co., Inc., against real property and improvement owned by Defendant CYLX Corporation on December 7, 2010, such lien being recorded as Doe # 2010017059 in the office of the Tulsa County Clerk, was improper
inasmuch as Houchin claimed amounts due and owing in the lien statement that exceeded the contract price and, therefore, were not due and owing to Houchin under a contract with CYLX that Houchin breached by failing to fully perform, and shall be and is hereby immediately discharged pursuant to OKLA. STAT. TIT. 42, § 177.
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that the cash bond posted by Defendant Pheland Lucas and/or CYLX Engineering and Construction as substitute security for and to discharge the subject lien as an encumbrance against the property pursuant to OKLA. STAT. TIT. 42, § 147.1, shall be and is hereby discharged and the Tulsa County Clerk is hereby directed to and shall immediately return to Defendants Pheland Lucas and CYLX Engineering
and Construction the frill amount of such cash bond together with any and all interest earned thereon—the principal amount of such cash bond being $63,251.77—and to deliver such refund, payable to “Pheland Lucas and CYLX Engineering and Construction” to James P. McCann, counsel for Defendants Pheland Lucas and CYLX Engineering and Construction, at the address indicated in the signature block below or making such refund available for pick-up by such counsel upon notice of availability.
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that attorney fees and costs to be considered upon application by Defendants.

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