South Bay Engineering Corp. v. Citizens Savings & Loan Ass'n

South Bay Engineering Corporation (South Bay) instituted an action to foreclose a mechanics lien in the amount of $11,821.94 on certain real property situated in the Palos Verdes area of Los Angeles County.

Prior to commencement of these proceedings Citizens Savings and Loan Association (formerly United Savings and Loan Association, and originally Cabrillo Savings and Loan Association) (Citizens) had acquired title to the property by way of foreclosure of a first trust deed held by Citizens. Citizens in turn sold parcels of the property to various individuals.

The trial court rendered a judgment establishing South Bay’s lien as prior and superior to Citizens first trust deed, permitting execution sale of three parcels of property, ouster of persons in possession, and charging Citizens with any deficiency. Citizens appeals.

Facts

In 1966, Gordon Shawver and J. B. Graner each owning contiguous five-acre parcels of undeveloped real property in the City of Rolling Hills Estates embarked on a joint venture to subdivide the entire 10 acres and sell homesites to the public.

They engaged South Bay to make aerial topographic maps and “to make lot studies for possible…