VCS, Inc. v. La Salle Dev., LLC

In this dispute two companies claimed superior interests in a subdivision property. VCS, Inc. performed work on the subdivision as a general contractor and claimed a valid mechanic's lien on the property. Utah Community Bank (UCB) claimed it acquired an interest in the same property by extending a construction loan, secured by a deed of trust, to the subdivision's owner. VCS sued UCB to vindicate its allegedly superior interest in the property. UCB, in response, asserted that VCS's mechanic's lien was not valid as against UCB's interest because VCS failed to record a timely lis pendens. The district court granted summary judgment for UCB. The Supreme Court affirmed, holding (1) VCS's failure to record a timely lis pendens rendered its mechanic's lien void and unenforceable as against UCB; (2) VCS was not entitled to equitable relief under the doctrine of unjust enrichment because it failed to appropriate exhaust its legal remedies; (3) accordingly, the district court did not err in awarding attorney fees to UCB; and (4) likewise, UCB was entitled to its reasonable attorney fees incurred on appeal. View "VCS, Inc. v. La Salle Dev., LLC" on Justia Law