Coast Central Credit Union v. Superior Court

Summary

Petitioner, Coast Central Credit Union (Coast), is a defendant in an action to foreclose a mechanics’ lien brought by real party, James Lee.

Coast moved for summary judgment against Lee on the ground that Lee’s action was not timely filed and on the separate ground that all disbursements made by Coast were secured by its deed of trust which had priority over Lee’s lien. Respondent denied the motion, and this timely petition followed (Code Civ. Proc., § 437c, subd.(l)). As will be seen, we agree with the superior court and, accordingly, discharge our alternative writ and deny the petition.

Factual Background

Lee was hired by Jean Bazemore to build her home. Coast financed the construction and recorded its trust deed prior to the commencement of the work. The agreement between Coast and Bazemore provided that no disbursements would be made by Coast if any mechanics’ lien was on file, unless the lien was satisfied by the disbursement. The agreement generally provided for disbursements according to a schedule known as the “Five Pay Draw” plan, with disbursements at specified stages of construction. Those stages in the Coast/Bazemore agreement were upon (1)…