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Rigoli v. 44 Monroe Marketing, LLC

336 P.3d 745 (2014)

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Rigoli v. 44 Monroe Marketing, LLC

Arizona Court of Appeals
336 P.3d 745 (2014)

Facts

44 Monroe Marketing, LLC (Monroe) (defendant) sought to build condominiums. John Rigoli and others (the purchasers) (plaintiffs) entered into purchase contracts with Monroe for individual units. The purchasers made various deposits of earnest money and down payments between April 2005 and September 2006. Monroe secured a construction loan from Corus Bank on the condition of Monroe acquiring a certain amount of earnest money from prospective occupants. In a loan-commitment letter, Corus Bank also required Monroe to use preapproved purchase contracts expressly stating that the purchasers acquired no lien rights, though no such language appeared in the actual contracts. Corus Bank made the loan, secured by a deed of trust against the property on September 1, 2006. In 2009, Monroe defaulted on the loan. The purchasers brought an action against Monroe to quiet title and foreclose. Monroe argued that the purchasers’ liens were invalid against the lien held by Corus Bank. The court granted summary judgment in favor of the purchasers. Monroe appealed.

Rule of Law

Issue

Holding and Reasoning (Gemmill, J.)

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