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Parkwest Homes, LLC, An Idaho Limited Liability Company v. Julie G. Barnson

April 18, 2013

PARKWEST HOMES, LLC, AN IDAHO LIMITED LIABILITY COMPANY, PLAINTIFF-APPELLANT,
v.
JULIE G. BARNSON, AN UNMARRIED WOMAN; AND MORTGAGE ELECTRONIC REGISTRATION SYSTEMS, INC., A DELAWARE CORPORATION, AS NOMINEE FOR HOMECOMINGS FINANCIAL, LLC AKA HOMECOMINGS FINANCIAL NETWORK, INC., DEFENDANTS, AND RESIDENTIAL FUNDING REAL ESTATE HOLDINGS, LLC, A DELAWARE LIMITED LIABILITY COMPANY, INTERVENOR-RESPONDENT.



Appeal from the district court of the Third Judicial District of the State of Idaho, Canyon County. Hon. Bradley S. Ford, District Judge.

The opinion of the court was delivered by: W. Jones, Justice

2013 Opinion No. 50

Stephen W. Kenyon, Clerk

SUBSTITUTE OPINION, THE COURT'S PRIOR OPINION DATED FEBRUARY 4, 2013 IS HEREBY WITHDRAWN

The decision of the district court is affirmed. Costs on appeal are awarded to Respondent.

I. NATURE OF THE CASE

This is an appeal from an order granting summary judgment in an action to foreclose a mechanic's lien by ParkWest Homes, LLC ("ParkWest") against Julie Barnson ("Barnson") and Mortgage Electronic Services, Inc. ("MERS"). In ParkWest Homes, LLC v. Barnson, 149 Idaho 603, 238 P.3d 203 (2010) (hereinafter "ParkWest I"), this Court held that ParkWest's lien on the property was valid. After this Court's decision in ParkWest I, property encumbered by ParkWest's lien was conveyed to Residential Funding Real Estate Holdings, LLC ("Residential") via a trustee's sale conducted by First American. Residential intervened in this action and sought summary judgment. The district court dismissed MERS from the action and granted Residential summary judgment. It ruled that Residential took the property free and clear of ParkWest's lien on the property, because neither Residential nor its predecessors-in-interest were named in this action. ParkWest appeals the district court's grant of summary judgment.

II. FACTUAL AND PROCEDURAL BACKGROUND

The facts giving rise to the current action were described by this Court in ParkWest I:

On March 27, 2006, ParkWest Homes LLC and [Julie] Barnson both signed a written contract dated March 15, 2006, under which ParkWest agreed to construct a home on certain real property for $422,000. At the time that the parties negotiated and executed the contract, ParkWest was not registered under the Idaho Contractor Registration Act, Idaho Code §§ 54-5201 to 54-5212

(Contractor Act). On April 7, 2006, Barnson purchased the property upon which the home was to be built.

ParkWest registered under the Contractor Act on May 2, 2006; it commenced construction of the home on May 22, 2006; and it claims to have substantially completed construction on November 1, 2006. ParkWest and

Barnson later had a dispute as to whether she had paid all sums due. On November 28, 2006, ParkWest recorded a mechanic's lien against the property, claiming that the sum of $189,117.99, plus interest, was due for labor and materials it furnished in constructing the home.

On November 14, 2006, two deeds of trust were recorded against the property. Mortgage Electronic Services, Inc., (MERS) is the beneficiary under both deeds of trust.

149 Idaho at 604-05, 238 P.3d at 204-05. In addition to MERS being named the beneficiary under the deed of trust, Transnation Title ("Transnation") was named the trustee. On June 28, 2007, First American was appointed the successor trustee.

On August 7, 2007, ParkWest filed an action to foreclose its lien. It named only Barnson and MERS as party-defendants. It did not name either Transnation, the original trustee, or First American, the successor trustee. On August, 13, 2007, ParkWest recorded a lis pendens with the Canyon County Recorder. On September 13, 2007, ParkWest recorded an amended lis pendens. On September 30, 2008, ParkWest and Barnson filed a Stipulation for Entry of Final Judgment. This stipulation enabled ParkWest to take immediate possession of the property, and in return ParkWest agreed to release Barnson from any personal liability ("Barnson Judgment"); neither MERS nor First American was a party to this stipulation.

On October 2, 2008, MERS filed a motion for summary judgment arguing that ParkWest's mechanic's lien was void because ParkWest failed to comply with I.C. §§ 45-507, 45-525. ParkWest I, 149 Idaho at 605, 238 P.3d at 205. On October 6, 2008, ParkWest filed the Second Amended Complaint to Foreclose its lien. On October 7, 2008, the district court entered judgment against Barnson, which was recorded the same day. The Judgment against Barnson did not name Residential nor any of its predecessors-in-interest.

On January 26, 2009, the district court granted summary judgment in favor of MERS. ParkWest appealed the district court's order to this Court on March 9, 2009. On July 20, 2009, because of Barnson's default, the deed of trust was foreclosed by First American through a trustee's sale. First American conveyed the property to Residential through a Trustee's Deed.

In ParkWest I, decided on June 25, 2010, this Court reversed the district court's grant of summary judgment. ParkWest I, 149 Idaho at 609, 238 P.3d at 209. In that case, this Court decided that ParkWest adequately complied with I.C. ยง 45-507, and its lien was not lost under the ...


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