Ultrawall, Inc. v. Washington Mutual Bank, FSB, 135 Idaho 832

Summary

The Idaho Supreme Court affirmed summary judgment prioritizing Washington Mutual Bank's recorded deeds of trust over Ultrawall's later mechanic's liens. The court declined to overrule Pacific States Sav. & Loan & Bldg. Co. v. Dubois and held that each mechanic's lien is prioritized based on when the particular claimant commenced labor, furnished materials, or provided applicable professional services. Attorney fees were denied because Ultrawall's appeal presented a good-faith argument, although costs were awarded to Washington Mutual.

Holdings

1. Under Idaho Code section 45-506, a mechanic's lien claimant's priority is determined by the date that particular claimant commenced the relevant labor, furnished materials, or commenced qualifying professional services; a later claimant may not relate its lien back to the earliest work performed by another claimant.
2. The court declined to overrule or disturb Pacific States's interpretation of Idaho's mechanic's lien statute.
3. Washington Mutual was not entitled to attorney fees on appeal because Ultrawall's challenge to existing Idaho law was made in good faith and was not frivolous, unreasonable, or without foundation.

Questions Presented

1. Whether Idaho Code section 45-506 gives every mechanic's lien claimant priority dating from the earliest work or materials furnished on the construction project.
2. Whether Pacific States Sav. & Loan & Bldg. Co. v. Dubois should be overruled or disturbed.
3. Whether Washington Mutual was entitled to attorney fees on appeal under Idaho Appellate Rule 41.

Disposition

affirmed