American Savings Ass'n v. ICI Development Corp.
American Savings Ass'n v. ICI Development Corp.
Opinion of the Court
At issue is the applicability to the particular facts of this case of the one-year limitations period for mechanic’s lien enforcement proceedings, MCLA 570.9; MSA 26.289. In spite of the procedural turn that this lawsuit had taken, the trial court found the statute controlling and, by summary judgment, ruled that defendant-appellant AMRCO Corporation had no right to share in the proceeds of sale of certain real property. AMR-CO’s appeal to the Court of Appeals failed when that Court granted the motion to affirm of plaintiff-appellee American Savings Association, and thereafter denied AMRCO’s motion for rehearing. We find the limitations period inapplicable. We reverse the judgments below and remand to the trial court for further proceedings.
The facts and proceedings below are as follows: On June 1, 1973, AMRCO filed with the Wayne County Register of Deeds its statement of account and lien in the amount of $9,827 against property
"That the lien rights or claims thereof of all parties litigant in and to the said premises be and hereby are terminated and that the claimed liens of said parties are hereby transferred to the proceeds of the sale of the said premises, and that the issues as to amount, validity and priority of payment of such liens, and the rights of American Savings Association under the mortgage, promissory note and guaranty referred to in its amended complaint for foreclosure of mortgage be hereafter determined by this court in accordance with the law in such case made and provided.”
On June 27, 1974, the realty was sold. On October 25, 1974, American Savings filed its motion for summary judgment which was granted over the vigorous contention of AMRCO that, after May 10, it would have been a violation of the court’s own order for AMRCO to have clouded title to the property by filing a counterclaim to foreclose its lien and notice of lis pendens, pursuant to MCLA 570.10; MSA 26.290. We agree.
Reversed and remanded. AMRCO may tax its costs on appeal.
Reference
- Full Case Name
- AMERICAN SAVINGS ASSOCIATION v. ICI DEVELOPMENT CORPORATION
- Status
- Published