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Williams & Works, Inc. v. Springfield Corporation
Supreme Court of Michigan
293 N.W.2d 304 (1980)
Springfield Corporation (defendant) contracted with Williams & Works, Incorporated (W&W) (plaintiff) to provide engineering services for the planned construction of an apartment complex in Michigan. W&W performed the engineering services off premises before any actual construction on the apartment complex began. Deciding to proceed with the plan, Springfield purchased the land from Kelly Mortgage and Investment Company (Kelly) to begin the construction project. Springfield signed two mortgages with Kelly (a first-assigned mortgage from City National Bank and a second, direct mortgage). Both mortgages were recorded. About one month later, construction began. Springfield conveyed the property to Bristol Square Properties (defendant). The project later folded, and W&W sued to foreclose on its mechanics’ lien. W&W argued that the mechanics’ lien took priority over the mortgages, because the work was performed before the mortgages were recorded. The trial court entered judgment in favor of W&W, holding that W&W’s services were improvements under the mechanics’ lien law that were commenced before the mortgages were recorded. The court of appeals affirmed. Kelly appealed.
Rule of Law
Holding and Reasoning (Williams, J.)
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