PREFERRED SAVINGS & LOAN ASSOCIATION, INC. v. Royal Garden Resort, Inc.

Chandler, Justice:

In this action between a construction lender (Preferred Savings) and a general contractor (Cianbro), the Court of Appeals held that Cianbro’s mechanic’s lien was invalid for failure to timely commence suit to foreclose. Preferred Sav. & Loan Ass’n v. Royal Garden Resort, Inc., 295 S. C. 268, 368 S. E. (2d) 78 (Ct. App. 1988). We granted certiorari and now affirm.

FACTS

Cianbro entered into a single fixed-price contract with the owner (Royal Garden) to construct a condominium project, for which Preferred Savings was the lender.

The project was substantially completed by June,…