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COA: Mortgage lien holder has priority

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The Indiana Court of Appeals determined today that two contractors with mechanic's liens did not have priority over the mortgage lien held by the bank in a foreclosure action, discussing a law in a ruling for only the second time since it was enacted in 1999.

At issue in Harold McComb & Son, Inc. and American Renovations of Indiana, Inc. v. JPMorgan Chase Bank, NA, No. 02A04-0802-CV-60, is whether Harold McComb & Son and American Renovations of Indiana, who held mechanic's liens on work they did as general contractors on a property JPMorgan Chase foreclosed on, should have priority over Chase's mortgage lien.

In a consolidated action, the trial court granted partial summary judgment to Chase, finding Harold McComb had no legal standing to challenge Chase's foreclosure action because it wasn't party to the construction loan agreement or the note between Chase and the commercial property owner.

But the general contractors believed the trial court erred in its prioritizing of the liens of the parties, granting Chase priority over the mechanic's liens.

The Court of Appeals examined Indiana Code Section 32-28-3-5(d), which the General Assembly passed in 1999 to fill a statutory gap identified by the Indiana Supreme Court in 1910 regarding mechanic's liens. The appellate court looked to Judge John Sharpnack's dissent in Provident Bank v. Tri-County Southside Asphalt, Inc., 804 N.E.2d 161, 163 (Ind. Ct. App. 2004) - which is the only other time the Court of Appeals has discussed that section of Indiana Code - and determined the judge's discussion of the section was correct, wrote Judge Patricia Riley.

Because the statutes in existence when Ward v. Yarnelle, 173 Ind. 535, 91 N.E. 7 (1910), was decided didn't address the lien priority between a mortgage executed to raise funds for construction of improvements on a property and the mechanic's liens of those who provided the labor and supplies, the General Assembly adopted Section (d) to say that when the funds from the loan secured by the mortgage are for the project that gave rise to the mechanic's lien, then the mortgage lien has priority over the mechanic's liens recorded after the mortgage, wrote Judge Riley citing Judge Sharpnack's dissent.

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  1. How nice, on the day of my car accident on the way to work at the Indiana Supreme Court. Unlike the others, I did not steal any money or do ANYTHING unethical whatsoever. I am suing the Indiana Supreme Court and appealed the failure of the district court in SDIN to protect me. I am suing the federal judge because she failed to protect me and her abandonment of jurisdiction leaves her open to lawsuits because she stripped herself of immunity. I am a candidate for Indiana Supreme Court justice, and they imposed just enough sanction so that I am made ineligible. I am asking the 7th Circuit to remove all of them and appoint me as the new Chief Justice of Indiana. That's what they get for dishonoring my sacrifice and and violating the ADA in about 50 different ways.

  2. Can anyone please help this mother and child? We can all discuss the mother's rights, child's rights when this court only considered the father's rights. It is actually scarey to think a man like this even being a father period with custody of this child. I don't believe any of his other children would have anything good to say about him being their father! How many people are afraid to say anything or try to help because they are afraid of Carl. He's a bully and that his how he gets his way. Please someone help this mother and child. There has to be someone that has the heart and the means to help this family.

  3. I enrolled America's 1st tax-free Health Savings Account (HSA) so you can trust me. I bet 1/3 of my clients were lawyers because they love tax-free deposits, growth and withdrawals or total tax freedom. Most of the time (always) these clients are uninformed about insurance law. Employer-based health insurance is simple if you read the policy. It says, Employers (lawyers) and employees who are working 30-hours-per-week are ELIGIBLE for insurance. Then I show the lawyer the TERMINATION clause which states: When you are no longer ELIGIBLE! Then I ask a closing question (sales term) to the lawyer which is, "If you have a stroke or cancer and become too sick to work can you keep your health insurance?" If the lawyer had dependent children they needed a "Dependent Conversion Privilege" in case their child got sick or hurt which the lawyers never had. Lawyers are pretty easy sales. Save premium, eliminate taxes and build wealth!

  4. Ok, so cheap laughs made about the Christian Right. hardiharhar ... All kidding aside, it is Mohammad's followers who you should be seeking divine protection from. Allahu Akbar But progressives are in denial about that, even as Europe crumbles.

  5. Father's rights? What about a mothers rights? A child's rights? Taking a child from the custody of the mother for political reasons! A miscarriage of justice! What about the welfare of the child? Has anyone considered parent alienation, the father can't erase the mother from the child's life. This child loves the mother and the home in Wisconsin, friends, school and family. It is apparent the father hates his ex-wife more than he loves his child! I hope there will be a Guardian Ad Litem, who will spend time with and get to know the child, BEFORE being brainwashed by the father. This is not just a child! A little person with rights and real needs, a stable home and a parent that cares enough to let this child at least finish the school year, where she is happy and comfortable! Where is the justice?

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