Markham Contracting Co. v. Federal Deposit Insurance Co.

OPINION

SWANN, Judge:

¶ 1 This is a foreclosure case. Markham Contracting Co. (“Markham”) perfected a mechanic’s lien on a property in second position to a first deed of trust. Lenders made a secured construction loan that was used, in part, to satisfy and release the first-position loan and deed of trust on the subject property. The lenders later foreclosed on the second deed of trust, using a credit bid, and claimed to extinguish Markham’s mechanic’s lien on a theory of equitable subrogation. Markham challenged the priority of the lenders’ interest and demanded that it be paid from the…