Altom Construction Co. v. BB Syndication Services, Inc.
359 S.W.3d 146
Mo. Ct. App.2012Background
- Altom and Great River protested BBSSI's deed of trust as a construction loan that would subordinate to mechanic's liens.
- The Interim Loan and related documents were characterized as construction funding for initial infrastructure, not purchase of land.
- BBSSI knew subcontractor liens could be filed and actively participated in arranging labor/materials.
- Mechanic's liens were filed by Altom and Great River and challenged BBSSI's lien priority.
- Trial court found the Interim Loan to be a construction loan under Missouri's future advance statute and that BBSSI anticipated lien claims.
- Court affirms trial judgment that mechanic's liens have priority over BBSSI's loan.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the loan is a construction loan for lien priority | Altom/Great River: loan was construction loan | BBSSI: loan is purchase money lien | Yes, construction loan; lien priority against purchase money lien denied |
| Whether BBSSI waived its prime mortgage lien | Waiver argument should apply to the lien | Waiver applies to purchase money liens | Waived argument rejected; construction loan finding controls |
| Whether Great River's plans support a valid mechanic's lien | Plans were directly connected to improvements | Plans were incomplete; insufficient for lien | Plans were directly connected; lien valid |
| Whether Respondents' lien statements satisfied 'just and true' accounting | Statements detailed invoices and charges | Statements lacked sufficient detail | Statements were detailed; substantial evidence supports just and true accounting |
Key Cases Cited
- Glenstone Block Co. v. Pebworth, 330 S.W.3d 98 (Mo.App. S.D.2010) (mechanic's lien priorities; weight of evidence standard)
- Space Planners Architects, Inc. v. Frontier Town-Missouri, Inc., 107 S.W.3d 398 (Mo.App. S.D.2003) (burden to prove essential elements of lien statute)
- Coomes v. Slater Development Corp., 36 S.W.3d 412 (Mo.App. W.D.2001) (lien statute construed to favor mechanics/materialmen)
- Brownstein v. Rhomberg-Haglin & Assoc., Inc., 824 S.W.2d 13 (Mo. banc 1992) (design professional lien requirements under §429.015)