Opinion ID: 2793612
Heading Depth: 1
Heading Rank: 3

Heading: Events Leading Up to the Present Dispute

Text: ¶5 The facts of this case center on fourteen parcels of real property located in Salt Lake City in the Acord Meadows planned unit development (Acord Meadows PUD). In May 2005, several buyers obtained title to lots one through fourteen of the Acord Meadows PUD.1 Near the end of 2005, the buyers conveyed the properties to Acord Meadows, LLC (Acord). To fund the purchase, Acord granted America West a $540,000 trust deed (America West Trust Deed 1) and granted Utah Funding a $152,000 trust deed (Utah Funding Trust Deed 1).2 Both trust deeds were entered into on December 28, 2005, and recorded on December 30, 2005. ¶6 Shortly after America West and Utah Funding recorded their trust deeds, VCS, Inc. (VCS) performed work on lots one through six and lot fourteen.3 It did so under a previously negotiated contract between it, Acord, Lind Enterprises, Inc., and L. Kyle Lind. VCS was never paid for its work. ¶7 In May 2006, Acord granted America West another trust deed, this time for $425,000 (America West Trust Deed 2). America West recorded the deed on May 25, 2006. In connection with the new trust deed, America West required that Utah Funding agree to subordinate Utah Funding Trust Deed 1 to America West Trust Deed 2. The parties executed a subordination agreement, which was recorded on July 12, 2006 (Subordination Agreement 1). ¶8 Acord sought further funding from America West in October 2006. To secure an additional $751,233, Acord and America West agreed to modify the amount of America West Trust Deed 1 from $540,000 to $1,291,233 (Modified America Trust Deed 1). On the same day the parties modified the deed, America West executed a subordination agreement that made America West Trust Deed 2 1The May 2005 buyers were Robert Mills, Rick Newton, Bart Roser, Victoria Serre, and Lind Enterprises, Inc. 2 Utah Funding assigned its interest in Utah Funding Trust Deed 1 to Lind Enterprises, Inc., Ms. Serre, and Huish Group on January 3, 2006. And soon after that, on January 17, 2006, Huish Group assigned its interest to North Star Funding Group, Inc. 3The parties agree, only for purposes of this appeal, that VCS began performing work on January 6, 2006. 3 VCS v. COUNTRYWIDE Opinion of the Court subordinate to Modified America West Trust Deed 1 (Subordination Agreement 2). ¶9 Soon after receiving funds from America West, Acord sought further funding from Utah Funding. Acord granted Utah Funding a $100,000 trust deed (Utah Funding Trust Deed 2).4 Utah Funding recorded the deed on November 13, 2006. ¶10 As a final source of funding, Acord granted America West another trust deed, this time for $200,000, on August 7, 2007 (America West Trust Deed 3).5 This deed differed from the others in that it covered only lots one and two. America West required Utah Funding to subordinate both Utah Funding Trust Deed 1 and Utah Funding Trust Deed 2 to America West Trust Deed 3 (Subordination Agreements 3 and 4). ¶11 In September 2007, VCS filed notice of a mechanic‘s lien for work it performed on lots three through six for $127,335.91. And two months later, in November 2007, it filed notice of a mechanic‘s lien for work it performed on lots one and two for $98,000. VCS later amended each of those notices, in January 2008, by changing the date of the first labor and material to January 6, 2006.6 It also amended the 4 Utah Funding assigned its interest in Utah Funding Trust Deed 2 to Lind Enterprises, Inc., Huish Group, Keith and Verla Hamp, and American Pension Services, Inc. admin. for Vicki Serre IRA #5957 on November 3, 2006. Later, on June 27, 2007, Huish Group assigned part of its interest (including only lots one through six) to CCT Investments. 5 We note that the parties failed to include Utah Funding Trust Deed 3 in the record. But its existence was undisputed below and the parties agree on its material terms. Moreover, the deed is referenced in one of the subordination agreements that is in the record. Accordingly, for purposes of this opinion, we assume that the deed exists and that its terms are as the parties have represented. 6 At the time VCS filed its notice of a mechanic‘s lien, and at the time this lawsuit commenced, Utah law provided that a construction service lien related back to ―the time of the commencement of construction service on the ground for the improvement.‖ UTAH CODE § 38-1-5(1) (Supp. 2011). Because this was the law in place at the time of all relevant events in this case, we assume its application in this appeal. See Gressman v. State, 2013 UT 63, ¶ 13, 323 P.3d 998 (―Under our case law, the parties‘ substantive rights and liabilities are determined by the law in place at the time when a cause of action 4 Cite as: 2015 UT 46 Opinion of the Court amount owed on lots one and two to $29,876.98 and the amount owed on lots three through six to $175,907.20. ¶12 At some point during these events, America West‘s trust deeds were reconveyed and released. The parties have provided few specifics regarding when the deeds were released.7 But regardless, VCS has never challenged the assertion that America West‘s trust deeds were reconveyed and released, and even conceded the point below. So for purposes of this appeal, we acknowledge the parties‘ stipulation and assume that all of America West‘s trust deeds were reconveyed and released. ¶13 Acord later defaulted on both Utah Funding trust deeds. The trustee of each of the trust deeds issued a notice of default and election to sell for each. Only lots one through four were listed on the notices. The trustee held a sale under Utah Funding Trust Deed 2 on March 4, 2008. Huish Group, Keith Hamp, and Verla Hamp purchased that interest. VCS alleges that co-appellant Tom Phelps and several others made a bid for the property, but that the trustee refused to accept their bid. ¶14 In August 2008, about five months after the sale under Utah Funding Trust Deed 2, the trustee held a sale under Utah Funding Trust Deed 1. North Star Funding Group, Lind Enterprises, Inc., and Ms. Serre purchased that interest. They later conveyed the interest to L. Kyle Lind. Mr. Lind then conveyed lots one, three, and four to separate buyers. He conveyed lot one to Nathan Spencer. In connection with that conveyance, Mr. Spencer executed a trust deed in favor of Axiom Financial, LLC. Mr. Lind conveyed lot three to Nathan Van Rij and Sarah Van Rij. The Van Rijs executed a note in favor of Countrywide Home Loans, Inc. to pay for lot three. And finally, Mr. Lind conveyed lot four to Craig Belliston and Natasha arises . . . .‖ (internal quotation marks omitted)). Moreover, neither party has contested its application. 7 One of the third-party defendants, Axiom Financial, LLC, asserts that America West Trust Deed 2 was released on May 22, 2007, approximately two months before America West loaned Acord funds under America West Trust Deed 3. But other than that assertion, there is no further evidence regarding the reconveyances of America West‘s trust deeds. 5 VCS v. COUNTRYWIDE Opinion of the Court Belliston. Each person who purchased from Mr. Lind was named as a third-party defendant by VCS and is an appellee in this appeal.8