Ground Zero Construction, Inc. v. Walnut Creek, LLC
2012 Ark. 243
| Ark. | 2012Background
- Ground Zero sent a 75-day lien notice under Ark. Code Ann. § 18-44-115(e)(2).
- Metropolitan Bank loaned Walnut Creek Properties for a commercial subdivision; Walnut Creek mortgaged the property.
- Ground Zero contracted with Rees for water and sewer work; total contract price was $1,935,851.83.
- Ground Zero had received $1,651,738.97 by May 6, 2008; balance due $284,112.86.
- Ground Zero filed suit January 20, 2009 for foreclosure of its lien; circuit court dismissed lien claim for insufficient description.
- Metropolitan obtained a first mortgage lien; Ground Zero’s lien was found subordinate; Ground Zero appealed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the lien notice satisfied the general description requirement | Ground Zero asserts description adequate. | Metropolitan argues description insufficient. | Description failed; strict compliance required and not met. |
Key Cases Cited
- Books-A-Million, Inc. v. Ark. Painting & Specialties Co., 340 Ark. 467 (2000) (strict compliance with §18-44-115; liens are extraordinary remedies)
- Valley Metal Works, Inc. v. A.O. Smith-Inland, 264 Ark. 341 (1978) (strict construction of lien statutes)
- Ark. Lottery Comm’n v. Alpha Mktg., 386 S.W.3d 400 (2012) (court will not infer rulings from circuit court silence)