CS & W Contractors, Inc. v. Southwest Savings & Loan Ass'n

MARTONE, Justice.

This case requires us to decide whether a subcontractor may extract the value of improvements on a fifty-two lot subdivision from four of the lots. Because we hold that it may not, we partially vacate the opinion of the court of appeals and remand to the trial court for further proceedings.

Background

In June, 1986, Southwest Savings and Loan (Southwest) loaned money to Sencorp for the development of a fifty-two lot subdivision. The loan was secured by a deed of trust on all fifty-two lots (Deed of Trust I). Sencorp contracted with CS & W Contractors, Inc. (CS & W) in July,…