Crafton, Tull, Sparks & Associates, Inc. v. Ruskin Heights, LLC

2015 Ark. 1, 453 S.W.3d 667, 2015 Ark. LEXIS 16
CourtSupreme Court of Arkansas
DecidedJanuary 15, 2015
DocketCV-14-454
StatusPublished
Cited by13 cases

This text of 2015 Ark. 1 (Crafton, Tull, Sparks & Associates, Inc. v. Ruskin Heights, LLC) is published on Counsel Stack Legal Research, covering Supreme Court of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Crafton, Tull, Sparks & Associates, Inc. v. Ruskin Heights, LLC, 2015 Ark. 1, 453 S.W.3d 667, 2015 Ark. LEXIS 16 (Ark. 2015).

Opinion

JIM HANNAH, Chief Justice

_JjAppellant Crafton, Tull, Sparks & Associates, Inc. (“CTSA”) appeals an order of the Washington County Circuit Court granting summary judgment in favor of appellees Ruskin Heights, LLC; Metropolitan National Bank (“Metropolitan”); William B. Benton, Jr.; J. Kevin Adams; Edward A. Labry, III; John G. Britting-ham; Carien G. Hooker; Edward F. Davis; Dirk W. Van Veen; and David Ruff, in his official capacity as Tax Collector for Washington County. For reversal, CTSA argues that the circuit court improperly refused to grant its lien priority over Metropolitan’s mortgage lien that was recorded after construction | ¡.commenced. CTSA also asserted that its lien should relate back to the commencement of construction. We have jurisdiction pursuant to Arkansas Supreme Court Rule 1-2(a)(7)(2014), as we have dismissed two previous appeals. See Crafton, Tull, Sparks & Assocs. v. Ruskin Heights, LLC, 2013 Ark. 85 (“Crafton II”) (dismissing without prejudice for lack of a final order); Crafton, Tull, Sparks & Assocs. v. Ruskin Heights, LLC, 2012 Ark. 56, 2012 WL 401611 (“Crafton I”) (dismissing without prejudice for lack of a final order). We affirm.

An extensive recitation of the facts and procedure was set forth in Crafton I, 2012 Ark. 56, and we provide the relevant facts concerning this appeal. On September 17, 2007, Metropolitan and Ruskin Heights executed a promissory note and loan agreement for $8,606,250 to finance construction of a residential subdivision on real property located in Washington County. As security for the note, Ruskin Heights executed a mortgage on the real property in favor of Metropolitan. In addition, William B. Benton, Jr.; J. Kevin Adams; Edward A. Labry, III; John G. Brittingham; Carien G. Hooker; Edward F. Davis; and Dirk W. Van Veen executed personal guarantees.

Nabholz Construction Company began construction on the project on the morning of October 1, 2007, and Metropolitan filed its mortgage that afternoon. CTSA subsequently began working on the project for Ruskin Heights. On September 25, 2009, Jim Tull, CTSA’s chief financial officer, filed an “Architect’s and Engineer’s Account and Affidavit of Account” stating that Ruskin Heights owed CTSA $37,239.45. Ruskin Heights received notice of CTSA’s lien filing on September 28, 2009. The $37,239.45 balance remained unpaid. Meanwhile, on August 3, 2009, Metropolitan filed a foreclosure complaint alleging | abreach of note and breach of guaranties against Ruskin Heights; William B. Benton, Jr.; J. Kevin Adams; Edward A. Labry, III; John G. Brittingham; Carien G. Hooker; Edward F. Davis; Dirk W. Van Veen; and David Ruff in his official capacity as Tax Collector for Washington County.

On November 2, 2009, CTSA filed a complaint asserting an engineer’s lien against Ruskin Heights. Thereafter, on December 7, 2009, the circuit court granted CTSA’s motion for consolidation and joinder of the two complaints. On December 14, 2009, CTSA filed an amended complaint against Ruskin Heights and Metropolitan. CTSA requested (1) that its lien and that Nabholz’s lien be declared superi- or to any lien or claims by Metropolitan and Ruskin Heights and (2) that CTSA be awarded a monetary judgment against Ruskin Heights and others. On September 10, 2010, CTSA filed a motion for summary judgment as to its claims against Ruskin Heights and Metropolitan, which it amended on September 24, 2010. In addition, Metropolitan filed a cross-motion for summary judgment against CTSA on September 10, 2010. After two hearings on the matter, the court held a final hearing on October 26, 2010, in which it ruled from the bench that CTSA had an engineering and architectural lien against the property at issue; that CTSA’s lien did not have priority over Metropolitan’s mortgage lien; and that CTSA’s lien did not relate back to the date of construction.

On November 29, 2010, the circuit court entered a partial judgment and decree, finding that Ruskin Heights had defaulted and owed Metropolitan damages; that Metropolitan’s mortgage lien was valid and enforceable; that Metropolitan had first priority |4as to any lien claim by Nabholz or CTSA; and that CTSA had a second lien on the property. CTSA filed a notice of appeal from the order on December 10, 2010. Thereafter, on December 13, 2010, the circuit court entered an order granting Metropolitan’s motion for summary judgment against CTSA and denying CTSA’s motion for summary judgment against Metropolitan. In its order, the circuit court ruled that the “Architect’s and Engineer’s Liens are not given the same priority under [Arkansas Code Annotated section] 18^44-105 as Materialmen’s [sic] and Laborer’s Liens,” and further found that “CTSA’s Architect’s and Engineer’s Lien did not attach to the property until August 25, 2009, which [was] the date CTSA’s lien was filed of record.” 1

CTSA appealed from the November 29, 2010 order finding that CTSA’s lien was second in priority to Metropolitan’s lien. In Crafton I, 2012 Ark. 56, we dismissed the appeal without prejudice for lack of a final order and identified the outstanding issues. On remand, the circuit court entered an order stating that certain parties and actions remained unresolved. CTSA appealed the November 29, 2010 order finding that CTSA’s lien was second in priority to the bank’s lien. We again dismissed without prejudice for lack of a final order on the basis that the order still contained unresolved issues and that the record lacked certain relevant pleadings. See Crafton II, 2013 Ark. 85.

On remand, on February 27, 2014, the circuit court entered an order dismissing 15Nabholz’s complaint in intervention and all remaining claims and cross-claims with prejudice. That same day, the court also entered a final judgment finding that the parties had not litigated or pursued any claims since May 2012 and that such claims were deemed to be dismissed for failure to prosecute. CTSA timely filed its notice of appeal, and we now consider the parties’ arguments before us.

For the first point on appeal, CTSA argues that the circuit court erred in granting summary judgment on the issue of lien priority. Specifically, CTSA contends that the court failed to grant its engineer’s lien priority over a mortgage filed after construction had commenced. CTSA asserts that the circuit court incorrectly interpreted the engineer’s lien statute, Arkansas Code Annotated section 18-44-105 (Supp. 2013), in connection with Arkansas Code Annotated section 18-44-110 (Repl. 2003). CTSA further maintains that its September 25, 2009 lien should have related back to the morning of October 1, 2007, when construction commenced, thereby giving it priority over Metropolitan’s mortgage lien, which was filed in the afternoon of October 1, 2007. For the second point on appeal, CTSA argues that section 18-44-110 removes any distinction between its engineer’s lien and the materi-alman’s lien and reiterates that CTSA’s lien should relate back to the commencement of construction and should have priority over Metropolitan’s mortgage. Because these are related points, we discuss them together.

Generally, on appeal from a summary-judgment disposition, the evidence is viewed in the light most favorable to the party resisting the motion, and any doubts and inferences are resolved against the moving party. Ark. State Bd. of Election Comm’rs v. Pulaski Cnty. Election Comm’n, 2014 Ark. 236, 437 S.W.3d 80.

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Bluebook (online)
2015 Ark. 1, 453 S.W.3d 667, 2015 Ark. LEXIS 16, Counsel Stack Legal Research, https://law.counselstack.com/opinion/crafton-tull-sparks-associates-inc-v-ruskin-heights-llc-ark-2015.