Opinion ID: 1250100
Heading Depth: 1
Heading Rank: 6

Heading: priority of mechanic's liens

Text: Assuming, arguendo, that C & R and Depner had capacity to commence suit, the district court erred in granting priority to their mechanic's liens. We considered the issue of priority of mechanic's liens in Aladdin Heating v. Trustees, Cent. States, 93 Nev. 257, 563 P.2d 82 (1977). There, this court held that surveying the land, drafting architectural plans and soil testing did not constitute work done within the meaning of NRS 108.225. This court stated: [A]ctual on-site construction had not yet started and the architectural, soil testing, and survey work appellants rely on for their priority is insufficient to constitute the commencement of a building or improvement; something more is required. Were we to hold otherwise and permit mechanics' liens to accrue based on this work done prior to the commencement of construction, mechanics' liens could relate back to a time long before there were any visible signs of construction to inform prospective lenders inspecting the premises that liens had attached. Under such circumstances, no prudent businessman would be willing to lend construction money. Id. at 260, 563 P.2d at 84 (citations omitted). The Bank argues that C & R and Depner never performed the something more required by Aladdin. We agree. C & R's project coordinator testified that the work performed was preliminary to actually proceed[ing] with the further planning and construction of the site improvements. The soil and engineering studies by C & R are insufficient to establish work done within the holding of Aladdin. Further work on the ranch was subject to many governmental agency approvals. What little work was visible on the 2,300 acre ranch (wells and trenching) does not constitute notice that actual development of the property had begun; indeed, the ranch was a working cattle ranch in 1981 and throughout the 1980's.