Court Opinion

ID: 9553528
Source: CourtListenerOpinion
Date Created: 2023-08-07 19:31:14.411721+00
Date Added: 2024-06-11T15:31:29.687554
License: Public Domain

CROCKETT, Chief Justice
(concurring specially) :
I agree that under the facts as disclosed in this case a mortgage for a definite amount, which is recorded prior to the attachment of any lien rights, should under normal circumstances take preference up to the amount that is paid out under the terms of the recorded mortgage agreement. But I desire to note that there may be situations in which the lending institution is holding money not yet advanced on a building, when it acquires actual knowledge that the builder is diverting money to some other purpose, and knows that the laborers or materialmen are not being paid and will not be paid. Under such circumstances the financier certainly should not be permitted to go on paying the money to a builder and thus in effect assist in cheating the laborers and material-men out of their pay and preclude them from the right to lien protection. See dissenting opinion of Jones, District Judge, in Utah Savings & Loan Association v. Mecham, 12 Utah 2d 335, 366 P.2d 598.