LeGrand Johnson Construction Co. v. Celtic Bank Corp.

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The Supreme Court reversed the decision to award prejudgment interest to LeGrand and concluded that Celtic Bank was the prevailing party on the prejudgment interest issues.LeGrand Johnson Construction Company filed an action seeking to enforce its mechanic’s lien on property owned by B2AC, LLC for the unpaid value of construction services, and Celtic Bank, B2AC’s lender, sought to foreclose on the same property after B2AC failed to pay on its loan. The action resulted in a lien for $237,294 and an award of attorney fees and costs. Thereafter, the district court determined that LeGrand’s lien, rather than Celtic Bank’s lien, had priority and awarded LeGrand attorney fees and costs. The court then ruled that LeGrand was entitled to recover eighteen percent in prejudgment and postjudgment interest from Celtic Bank based on LeGrand’s contract with B2AC. The Supreme Court (1) reinforced its holding in Jordan Construction, Inc. v. Federal National Mortgage Ass’n, 408 P.3d 296 (Utah 2017), that prejudgment interest is not available under the 2008 version of the Utah Mechanic’s Lien Act; and (2) vacated the attorney fee award because it was based, in part, on the notion that LeGrand had succeeded in establishing its right to prejudgment interest. View "LeGrand Johnson Construction Co. v. Celtic Bank Corp." on Justia Law