Pioneer Construction, Inc. v. Global Investment Corp.

Pioneer Construction, Inc. (Pioneer), appeals from a judgment entered for defendants Global Investment Corp. (Global) and Su-Chin Chen Tsou (Tsou) in Pioneer’s action for foreclosure of mechanic’s liens recorded against property owned by a debtor in bankruptcy, Oakridge Homes LLC (Oakridge). Global and Tsou purchased Oakridge’s property at a trustee’s sale held after relief from the automatic stay was obtained in Oakridge’s bankruptcy proceedings. The trial court sustained defendants’ demurrer on the grounds the recording of the mechanic’s liens against the property while Oakridge’s bankruptcy was pending violated the automatic stay of the United States Bankruptcy Code ( 11 U.S.C. § 362 ). We reverse, finding the 90-day period for foreclosing on Pioneer’s mechanic’s liens under Civil Code section 3144 was tolled during the pendency of the bankruptcy proceedings pursuant to the United States Bankruptcy Code ( 11 U.S.C. § 108 (c)).

*164 FACTUAL BACKGROUND AND PROCEDURAL HISTORY

In March 2005, Pioneer and Oakridge entered into an agreement pursuant to which Pioneer agreed to perform construction services on 19 lots owned by Oakridge located on Old Stone Way in Stevenson…