The Provident Bank v. Tri-County Southside Asphalt, Inc.

Summary

On rehearing, the Indiana Court of Appeals addressed the proceedings required after determining that Provident Bank's mortgage had priority over Tri-County's mechanic's lien. The court held that Bank One's mortgage was also superior, while permitting Tri-County to foreclose and recover the lien's value and statutory attorney fees after the mortgages were satisfied. Tri-County retained priority to proceeds from the sale of the driveway, subject to reduction of any foreclosure recovery by those proceeds.

Holdings

1. Bank One's mortgage was superior to Tri-County's mechanic's lien because Bank One recorded its mortgage on February 5, 1999, even though Bank One did not join Provident's appeal.
2. Because the validity of Tri-County's mechanic's lien was not contested, Tri-County could commence foreclosure proceedings and recover the value of its lien and the attorney fees provided by the mechanic's lien statute, but only after Provident's and Bank One's mortgages were satisfied.
3. Tri-County was entitled to priority as to proceeds from the sale of the driveway, and any recovery in foreclosure proceedings had to be reduced by the proceeds from that sale.

Questions Presented

1. Whether Bank One's mortgage was superior to Tri-County's mechanic's lien even though Bank One did not join Provident's appeal.
2. Whether Tri-County could commence foreclosure proceedings and recover the value of its mechanic's lien and attorney fees.
3. Whether Tri-County had priority to proceeds from the sale of the driveway.

Disposition

other