Moorefield Construction, Inc. v. Intervest-Mortgage Investment Co.

Defendants and cross-complainants Intervest-Mortgage Investment Company and Sterling Savings Bank (together Intervest) appeal a judgment in favor of plaintiff and cross-defendant Moorefield Construction, Inc. (Moorefield). The parties’ dispute arises from an uncompleted medical office building development in San Jacinto, California. Moorefield was the general contractor for the development, and Intervest was the construction lender. The developer, DBN Parkside, LLC (DBN), encountered financial difficulties toward the end of the project. As a result, DBN did not fully pay Moorefield for its construction services and defaulted on its construction loan from Intervest. Moorefield filed a mechanic’s lien against the development property, and Intervest took title to the property in a trustee’s sale under the construction loan.

Moorefield’s complaint against Intervest sought foreclosure of its mechanic’s lien on the property. Intervest’s cross-complaint against Moorefield sought a declaration of the relative priority of the lien, equitable subrogation to a priority position over the lien, quiet title, and judicial foreclosure. Following a bench trial, the court entered judgment…