Lane Myers Construction, LLC v. Countrywide Home Loans, Inc.

2012 UT App 269, 287 P.3d 479, 718 Utah Adv. Rep. 77, 2012 WL 4450292, 2012 Utah App. LEXIS 277
CourtCourt of Appeals of Utah
DecidedSeptember 27, 2012
Docket20101047-CA
StatusPublished
Cited by2 cases

This text of 2012 UT App 269 (Lane Myers Construction, LLC v. Countrywide Home Loans, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of Utah primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lane Myers Construction, LLC v. Countrywide Home Loans, Inc., 2012 UT App 269, 287 P.3d 479, 718 Utah Adv. Rep. 77, 2012 WL 4450292, 2012 Utah App. LEXIS 277 (Utah Ct. App. 2012).

Opinion

OPINION

ROTH, Judge:

T1 Lane Myers Construction, LLC (Lane Myers) challenges the award of attorney fees to Countrywide Home Loans, Inc. (Countrywide) pursuant to section 88-1-18 of the Utah Mechanics' Lien Act on the basis that Countrywide was not the successful party. See generally Utah Code Ann. § 38-1-18(1) (2010) (current version at id. § 88-l1a-707(1) *482 (Supp. 2012)) ("[Iln any action brought to enforce any lien under this chapter the sue-cessful party shall be entitled to recover a reasonable attorneys' fee....") 2 - Lane Myers also contends that the trial court erred in granting summary judgment for National City Bank of Indiana (National City) when it decided that Lane Myers's certification that there were no liens or claims that might result in a lien was equivalent to a written waiver and release of lien rights form required by the mechanies' lien act. See generally id. § 38-1-89(2), (4) (current version at id. §$ 38-1a-802(2), (4) (Supp. 2012)) (describing a form that includes the components of an enforceable waiver of lien rights). National City cross-appeals, asserting that the trial court erred when it reduced its request for attorney fees under section 38-1-18. We affirm the award of attorney fees to Countrywide but reverse the grant of summary judgment in favor of National City. The reversal of summary judgment makes National City's attorney fees claim moot.

BACKGROUND

T2 In February and May 2006, Lane Myers entered into two separate construction agreements with Dick and Kim Kyker (the home buyers) to build a residence in Oakley, Utah, (the Oakley home) and another in Park City,. Utah (the Mountain home). The home buyers obtained construction financing from Countrywide for the Oakley home and from National City for the Mountain home. Those loans did not cover the complete costs of constructing either of the homes. When the home buyers failed to pay Lane Myers the amounts due on the construction contracts, Lane Myers recorded a mechanies' lien and a lis pendens against each home. Lane Myers joined Countrywide, National City, and the home buyers as defendants in a lawsuit seeking to foreclose its mechanies' liens and to have those liens declared prior in right to the trust deeds recorded on the Oakley home by Countrywide and the Mountain home by National City to secure the construction finane-ing. At that point, the facts relevant to each defendant's case diverge.

I. The Oakley Home (Countrywide)

T3 The home buyers eventually paid Lane Myers in full for its construction work on the Oakley home, including attorney fees incurred by Lane Myers up to that point. On July 23, 2008, Lane Myers recorded a release of lien and a release of lis pendens for that property. - Lane Myers did not dismiss Countrywide from the foreclosure case, however, and nearly a year later, Lane Myers filed an amended complaint, asserting the same mechanies' lien foreclosure claim that it had asserted in its original complaint against Countrywide on January 283, 2008. 3 Countrywide moved for summary judgment on the basis that Lane Myers had been paid in full and had released the lien. In the motion, it contended that it was not only entitled to a judgment of dismissal as a matter of law but also to its reasonable attorney fees pursuant to section 88-1-18 of the mechaniecs' lien act. Section 38-1-39 provides, "[In any action brought to enforce any lien under this chapter the successful party shall be entitled to recover a reasonable attorneys' fee...." Id. § 38-1-18(1). Lane Myers conceded that dismissal of the claim against Countrywide was appropriate but asserted that Countrywide was not entitled to attorney fees because it had not succeeded on the merits. The trial court agreed with Countrywide, granting the motion for summary judgment and awarding it $27,729.50 in attorney fees incurred after July 28, 2008.

*483 II. The Mountain Home (National City)

T4 National City also filed a motion for summary judgment on Lane Myers's me-chanies' lien foreclosure claim for money owing on the Mountain home. 4 According to National City, the Request for Disbursement forms Lane Myers submitted in order to draw funds from the construction loan (the draw requests) had effectively waived any mechanies' lien rights for construction work completed prior to the date of each request. Each 'draw request contained identical language:

The Borrower(s) and General Contractor state that ... available proceeds of the loan are sufficient to finally and fully complete and pay for completion of improvements, and that no suppliers, subcontractors, laborers, or other persons are claiming or are entitled to claim a lien against the property securing the loan.

During the course of construction between September 2006 and August 2007, Lane Myers and the home buyers executed at least eleven progress payment draw requests containing this language.

[5 On August 22, 2007, Lane Myers made a final draw request on a printed form identical to those submitted for the progress payments. At the top of the draw request, Lane Myers wrote, "Final Draw." In addition to the language quoted above, the form stated,

IF THIS IS THE FINAL DRAW I/WE FURTHER CERTIFY THAT:
1. The General Contractor has to date been paid in full for all work performed and for all labor, materials furnished by the General Contractor and all sub-contractors, materialmen, suppliers and laborers and that no such sub-contractors, suppliers, materialmen, laborers or other persons providing goods and services used in the improvements to the property have unpaid claims except as specifically set forth as follows:

(Emphasis added.) No exceptions were noted in the space provided. The form then continued,

2. That no liens or claims that may result in lens exist against the above-described property other than set forth herein.
3. That the General Contractor has received payments for all stages of construction/rehabilitation of the property other than the final disbursement.
4. That the borrower(s) have requested, from the Lender, final disbursement of the construction/rehab funds in order to make final payment to the General Contractor and that upon said disbursement by Lender the General Contractor will be paid in full under the Construction Contract.

(Emphasis added.) No "liens or claims that may result in liens" were listed as exceptions on the final draw request, and the form was executed by both the home buyers and Lane Myers.

T6 National City asserted that the language of the draw requests created "a lien release for the Mountain ...

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Related

Lane Myers v. National City Bank
2014 UT 58 (Utah Supreme Court, 2014)
Lane Myers Construction, LLC v. National City Bank
2014 UT 58 (Utah Supreme Court, 2014)

Cite This Page — Counsel Stack

Bluebook (online)
2012 UT App 269, 287 P.3d 479, 718 Utah Adv. Rep. 77, 2012 WL 4450292, 2012 Utah App. LEXIS 277, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lane-myers-construction-llc-v-countrywide-home-loans-inc-utahctapp-2012.