Jeffrey C. Stone, Inc. v. Central & Monroe, L.L.C. (In re Mortgages Ltd.)

OPINION RE: LIEN PRIORITY

RANDOLPH J. HAINES, Bankruptcy Judge.

The issue here is whether various mechanics’ lien claimants, who claim priority dating from the commencement of construction in October, 2005, have priority over a construction deed of trust that was recorded in May of 2007. The lender, Mortgages, Ltd., maintains that even if there is but a single project or “work,” a mechanics’ lien has priority only dating from the general contract for which the work was performed (the “separate contracts doctrine”), and that in any event Mortgages is entitled to be equitably sub-rogated to a…