Bank of America National Trust & Savings Ass'n v. Zedd Investments, Inc.

The counterplaintiff, Inland Electric Corporation (Inland), filed a complaint for judgment and foreclosure in relation to mechanics liens it filed against several individual homeowners, their mortgagees, and the Bank of America (hereafter referred to collectively as counterdefendants). The trial court granted summary judgment to the counterdefendants on the grounds that Inland committed constructive fraud by filing multiple liens which misrepresented the amounts it was owed. Inland appeals. We hold that lien claims should be defeated on the basis of constructive fraud where a lien claimant…