[CLC-Discussion] 2011 mortgage foreclosure/notice of lis pendens v. 2013 construction lien

[Fred Dudley]

Maybe a civil thief, but a great example of (1) filing early and (2) ordering a title report (at least an “O and E” before recording a lien (or thereafter if not enough time before).

Fred R. Dudley, Partner
Board Certified Construction Lawyer
Dudley, Sellers & Healy, P. L.
SunTrust Financial Center, Suite 301
3522 Thomasville Road
Tallahassee, Florida 32308
Cell: (850) 294-3471
Direct: (850)692-6368
dudley at mylicenselaw.com


From: clc-discussion-bounces at lists.flabarrpptl.org [mailto:clc-discussion-bounces at lists.flabarrpptl.org] On Behalf Of Andrea Fair
Sent: Thursday, July 03, 2014 1:10 PM
To: <clc-discussion at lists.flabarrpptl.org>
Subject: [CLC-Discussion] 2011 mortgage foreclosure/notice of lis pendens v. 2013 construction lien

I have an issue involving my client’s construction lien and mortgage foreclosure suit that was filed years before my client was even hired.  Here is the chronology of events:

3/30/11 --- mortgage foreclosure filed
4/11/11 --- notice of lis pendens recorded for above suit
6/3/13 --- owners sign contract with my client
8/29/13 --- my client’s construction lien is recorded
11/13/13 --- my client’s lawsuit is filed and notice of lis pendens recorded
1/22/14 --- Final Judgment entered in mortgage foreclosure case
3/17/14 --- public sale in mortgage foreclosure case

I realize that the notice of lis pendens filed in the mortgage foreclosure case (to quote Leiby) “cuts off the rights of any person claiming any interest or lien in the property by virtue of a claim recorded after the recording of the notice of lis pendens, except for any holder of a lien who intervenes within 30 days of the recording of the notice of lis pendens.”  My client could have discovered the notice of lis pendens filed in the mortgage foreclosure case because it’s a matter of public record but we all know that our clients never look for such things.  At any rate, the notice of lis pendens filed in the mortgage foreclosure case was recorded long before my client performed any work and recorded its lien so they had no opportunity to intervene.  Obviously, my client was not a Defendant in the mortgage foreclosure case.

Is my client’s only relief a claim for breach of contract?  What about a fraud claim?  I think the answers are “yes” and “yes.”  The owners knew they were in the middle of a mortgage foreclosure so they likely knew they were making improvements to a home they were going to lose.  So then it’s likely that they never had any intention of paying my client.

What are your thoughts?  Thank you for all of your time and input.

Thanks,
Andrea


Andrea M. Fair-Purcell
Board Certified Construction Attorney
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FAIR•LAW•PLLC
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13046 Racetrack Road #236
Tampa, FL 33626
(813) 412-1077 phone
(877) 879-4990 fax
www.fairconstructionliens.com<http://www.fairconstructionliens.com>

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