IN RE MORTGAGES LTD.

Bankruptcy No. 2:08-bk-07465-RJH. Adversary No. 2:09-ap-00424-RJH.

459 B.R. 739 (2011)

In re MORTGAGES LTD., Debtor. Jeffrey C. Stone, Inc. d/b/a Summit Builders, an Arizona corporation, Plaintiff, v. Central and Monroe, L.L.C., an Arizona limited liability company; et al., Defendants. Summers Group, Inc. d/b/a Rexel Phoenix Electric, a corporation, Cross-Claimant/Counter-Claimant, v. Central and Monroe, L.L.C., an Arizona limited liability company; Cross-Defendants; and Jeffrey C. Stone, Inc. d/b/a Summit Builders, an Arizona corporation, Counter-Defendant and related counterclaims and cross claims.

United States Bankruptcy Court, D. Arizona.

October 20, 2011.


Attorney(s) appearing for the Case

Sharon B. Shively , Mark R. Jewett , Sacks Tierney P.A., Karen A. Palecek , Palecek & Palecek, P.L.L.C., Scottsdale, AZ, Stephen F. Banta , Law Offices of Stephen F. Banta, PLLC, Andrew Michael Fowler , Fowler Law Firm, Gilbert, AZ, Erin E. Byrnes , Jay R. Graif , Graif, Barrett & Matura, P.C., Hillary Perkins Gagnon , Jennings, Haugh & Cunningham, Margaret A. Gillespie , Collins, May, Potenza, Baran & Gillespie, Andy M. Kvesic , Ryley, Carlock & Applewhite, Adam B. Nach , Allison M. Lauritson , Lane & Nach, P.C., S. Gregory Jones , Ryley Carlock & Applewhite, Nathaniel B. Rose , Sherman & Howard LLC, John W. Storer, III , Swenson Storer Andrews & Frazelle, Michael J. Holden , Holden Willits PLC, Scott A. Malm , Gust Rosenfeld P.L.C., Todd B. Tuggle , Jennings, Strouss & Salmon, P.L.C., Daxton R. Watson , Mack Drucker & Watson PLLC, Mark B. Pyper , Owens & Pyper PLC, Jeffrey M. Proper , Jeffrey M. Proper, PLLC, Phoenix, AZ, Thomas N. Swift, II , Thomas N. Swift II, P.C., Mesa, AZ, for Debtor.


OPINION DENYING PARTIAL SUMMARY JUDGMENT RE: MECHANICS' LIEN PRIORITY

RANDOLPH J. HAINES, Bankruptcy Judge.

The issue here is whether various mechanics' lien claimants, who claim priority dating from the commencement of construction in November 2006, have priority over a construction deed of trust that was recorded in May of 2007. Among other defenses, the construction lender asserts the doctrine of equitable subrogation gives it priority back to that of...

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