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J.G. PLUMBING SERVICE, INC. v. COASTAL MORTGAGE CO.

No. 75-1540.

329 So.2d 393 (1976)

J.G. PLUMBING SERVICE, INC., Appellant, v. COASTAL MORTGAGE COMPANY, a Florida Corporation, et al., Appellees.

District Court of Appeal of Florida, Second District.

Rehearing Denied April 19, 1976.

Attorney(s) appearing for the Case

Tim H. Warren of Icard, Merrill, Cullis, Timm & Furen, Sarasota, for appellant.

Robert P. Rosin of Rosin, Abel, Band & Rosin, Chartered, Sarasota, for appellee, Coastal Mortgage.

GRIMES, Judge.

This case involves the question of whether a construction mortgage lender on an unfinished construction project runs the risk of unpaid subcontractors and materialmen obtaining liens upon the undisbursed loan funds because of its failure to promptly notify them of a default in the mortgage.

Goba Construction Company (Goba), the owner/contractor of a condominium project, brought suit against Coastal Mortgage Company (Coastal), its construction...

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