Mechanic’s Liens Have No Priority Over Mortgage After Sale to New Owner

A bankruptcy court’s finding that a lender’s interest in a retail shopping center development had priority over various mechanic’s liens was upheld May 7 by the U.S. Bankruptcy Appellate Panel for the Tenth Circuit (Brown Commercial Construction Co. v. Corbin Park L.P. (In re Corbin Park LP), B.A.P. 10th Cir., KS-10-084, 5/7/12).

Judge Tom R. Cornish held that the bankruptcy court committed no reversible error in its determination of priorities and found that some of the appellants’ arguments misconstrued the bankruptcy court’s ruling.

Construction Begins.

In 2004, real estate developers State Line LLC and 135 Metcalf LLC ...