R.I. Constr. Servs., Inc. v. Harris Mill, LLC

RICS executed a note secured by a mortgage on real estate. Meanwhile, TLA entered into a contract with RICS to provide architectural and engineering services for the project and recorded two documents related to its work on the project. Subsequently, TLA filed a petition to enforce its mechanics' lien. No claimant timely entered an appearance in TLA's mechanics' lien litigation to preserve the priority of their claims. Months later, Petra purchased the note and mortgage, which had not been recorded by the previous owner. Meanwhile, the superior court entered a consent order signed by RICS and TLS in the mechanics' lien litigation. RICS subsequently conveyed the property, and the court placed the property into receivership. Petra later filed a motion to file an answer and statement of claim out of time in the mechanics' lien proceedings. The court granted the motion, thereby restoring the mortgage's priority over TLA's mechanics' lien. The property was sold to Petra through a receivership action. The Supreme Court reversed the superior court's grant of Petra's motion, thereby restoring the priority of TLA's mechanics' lien, holding that the motion justice erred in determining that Petra's failure to file a timely statement of claim was the result of "excusable neglect." View "R.I. Constr. Servs., Inc. v. Harris Mill, LLC" on Justia Law