California Court of Appeal

Judgment in favor of plaintiff in a suit brought to foreclose its mechanic's lien, after the property at issue had been foreclosed upon and sold to a third party is reversed and remanded, where: 1) under well-established California law, the senior beneficiary's lien and title ordinarily do not merge when a deed in lieu of foreclosure is given if there are junior lienholders of record; 2) the foreclosure after acceptance of the deed from the property owner was therefore valid and eliminated all junior liens, including plaintiff's mechanic’s lien; and 3) the third party now owns the property free of all such junior encumbrances.

Appellate Information

• Decided 06/30/2014
• Published 06/30/2014

Judges

• ROTHSCHILD

Court

• California Court of Appeal

Counsel