Sutro

This appeal arises out of consolidated actions foreclosing mechanics liens on two condominium projects.

Appellant is a lender who took the property on foreclosure of a trust deed.

We have concluded that the trial court’s finding that the lien claimant and the owner were “one entity and indivisible” precludes enforcement of the claim, and therefore reverse the judgment.

The appeal has come up on a clerk’s transcript only, so we must assume that substantial evidence supports the trial court’s findings of fact.

Urbanetics Financial Corporation (hereinafter Urbanetics) constructed two residential condominium buildings. Robert Sutro and Edwin S. Bingham, Jr., as trustees of Sutro Mortgage Investment Trust (hereinafter Sutro) loaned money to Urbanetics, receiving trust deeds on the condominium projects as security. The trust deeds were recorded after the commencement of the work of improvement.

Plaintiff Superior Lumber Company (hereinafter Superior) supplied lumber and other wood products which went into the construction.

Urbanetics defaulted in the payment of interest to Sutro and filed a proceeding in the United States District Court for arrangement of debts under…