Valiant Idaho v. JV, LLC

This case stems from the foreclosure and lien priority case arising out of the failed Idaho Club golf course and residential housing development project. The developer, Pend Oreille Bonner Development, LLC (“POBD”), took out several loans on the real property, agreed to promissory notes, and mortgaged the Idaho Club real property with several lenders, including JV, LLC and, as relevant to this appeal, three other lenders: RE Loans (“REL”), LLC, Pensco Trust Co., and Mortgage Fund ’08 LLC (“MF08”) (collectively, the three “lenders”). JV’s interest in the Idaho Club arose out of a mortgage (the “JV Mortgage”) it recorded against five parcels on the Idaho Club property that JV sold to POBD. POBD ultimately defaulted on its obligations on the promissory notes associated with the mortgages. In addition to defaulting on the notes, POBD failed to pay property taxes to Bonner County for several years and failed to pay various mechanics and materialmen, one of which was Genesis Golf Builders, Inc. (“Genesis”). JV appealed the district court's conclusion that Valiant Idaho, LLC (“Valiant”) held a priority position in the mortgages on the development. JV also appealed the district court’s award of costs against it, as well as a judgment by the district court that awarded sanctions against JV and its attorney. The Idaho Supreme Court affirmed in part and vacated in part, finding JV's redemption deed did not subordinate it to Bonner County's right, title, claim and interested based on a tax deed. The Supreme Court also found the district court abused its discretion in the way that it applied the formula announced in Valiant Idaho, LLC v. North Idaho Resorts, LLC (No. 44583, 2018 WL 4927560) to arrive at its costs award. View "Valiant Idaho v. JV, LLC" on Justia Law