Construction and Collection Attorney

blog on construction, bond claims, mechanic's liens, collection issues, construction claims, change orders, commercial litigation. Focus on Utah law

Friday, October 10, 2008

Off site work and relating back for priority purposes

In Western Mortgage Loan Corporation v. Cottonwood Construction Co., 18 Utah 2d 409, 424 P.2d 437, (1967), the Utah Supreme Court held that laying out of streets and gutters and installing the sewer lines and electric utilities constituted off-site construction which would not give sufficient notice to lender that lienable work was occurring. The court held that the erection of a home was separate and severable from the earlier work in developing the subdivision. Therefore, four lien claimants who supplied material and labor on the house were not allowed to have their liens “relate back” to the off-site construction and the liens were determined to be subordinate to the lender whose mortgage attached before the work began on the house.

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