Lane Myers Constr., LLC v. Nat’l City Bank

Lane Myers Construction agreed to build two separate homes for Dick and Kym Kyker. The Kykers obtained a construction loan through National City Bank. The bank periodically paid Lane Myers on draw request forms that indicated that Lane Myers had no lien on the property. Because the Kykers failed to repay Lane Myers as promised, Lane Myers recorded a mechanic’s lien against the property. Lane Myers then filed suit seeking to enforce its lien. The district court granted summary judgment for the Kykers and National City, concluding that the draw requests substantially complied with the Utah Mechanics’ Lien Act in effectively waiving Lane Myers’ right to file a mechanic’s lien. The court of appeals reversed, concluding that the forms were not in substantial compliance with the Act because they failed to incorporate the four essential elements of the statutory “form” necessary to waive and release lien rights. The Supreme Court reversed and remanded, holding (1) the Act requires only a waiver and release signed by the lien claimant, and the “form” set forth in the Act is merely a safe harbor; and (2) genuine issues of material fact precluded summary judgment in this case. View "Lane Myers Constr., LLC v. Nat’l City Bank" on Justia Law