Emerald Designs, Inc. v. Citibank F.S.B.

KLEIN, Judge.

This case involves the issue of whether a subcontractor can claim an equitable lien against a lender’s undisbursed construction loan funds, where the construction project is completed, but the lender forecloses. The lender convinced the trial court that the party claiming the lien must allege fraud or misrepresentation. We disagree and reverse.

Citibank foreclosed its mortgages on two homes, and Emerald Designs, a landscape subcontractor which had perfected a mechanic’s lien against the owner, filed a counterclaim seeking an equitable lien on undis-bursed construction loan funds…