Jeffrey C. Stone, Inc. v. Central & Monroe, L.L.C. (In Re Mortgages Ltd.)

OPINION DENYING PARTIAL SUMMARY JUDGMENT RE: MECHANICS’ LIEN PRIORITY

RANDOLPH J. HAINES, Bankruptcy Judge.

The issue here is whether various mechanics’ lien claimants, who claim priority dating from the commencement of construction in November 2006, have priority over a construction deed of trust that was recorded in May of 2007. Among other defenses, the construction lender asserts the doctrine of equitable subrogation gives it priority back to that of a prior deed of trust because a portion of the construction lender’s loan was used to pay off the prior debt. And it argues that the second…