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Irwin Concrete, Inc. v. Sun Coast Properties, Inc.
Washington Court of Appeals
653 P.2d 1331 (1982)
Olympic Mall Company (Olympic) took out a loan from Continental, Inc. (Continental) (defendant) to buy and develop a tract of land. The contract secured future advances for Olympic. The contract provided that the future advances were subject to Continental approving that Olympic used the advances for improvements to the property. On June 9, 1972, Continental filed its deed of trust on the land. Hernando Chaves and Associates (Chaves) (plaintiff) was hired to perform engineering work on the property. Chaves began work on June 16, 1972, at which time its mechanic’s lien arose. Olympic defaulted on the loan, and Continental purchased the land at a trustee’s sale. Chaves claimed its mechanic’s lien was senior to Continental’s and thus did not extinguish upon the trustee’s sale. The trial court ruled against Chaves, finding the future advances to be mandatory for Continental. Chaves appealed.
Rule of Law
Holding and Reasoning (Worswick, J.)
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