Reid v. Saul

Webb, Judge.

In this action the plaintiff subcontractors, who were not properly paid for labor and materials they had furnished to the borrower-developer for the construction of a building, seek to recover from the construction lender on the theory that it should have administered the construction loan for their benefit and insured that they were properly paid by the borrower-developer. The loan by the lender to the borrower-developer was evidenced by a promissory note and loan agreement and was secured by a recorded security deed; the lender foreclosed pursuant to power of sale in the…