DURAFLEX SALES & SERV. v. W.H.E. MECH. CONTRACTORS

No. 39, Docket 95-9018.

110 F.3d 927 (1997)

DURAFLEX SALES & SERVICE CORPORATION, Plaintiff-Appellant, v. W.H.E. MECHANICAL CONTRACTORS; First National Bank of Stamford; Pierre Bellegarde, doing business as Bellegarde Interiors; Annex Painting Company; Kaufman Enterprises; Charter Federal Savings & Loan Association, now known as Charter Federal Savings Association; Cascio, Bechir & Associates, Inc.; East Haven Builders Supply, Inc.; Dolores Vartuli; V.F. Partnership, Defendants-Appellees, Resolution Trust Corporation; Ippona LLC, Consolidated-Defendants-Appellees, Hemingway Center Limited Partnership, Defendant-Appellee.

United States Court of Appeals, Second Circuit.

Decided April 3, 1997.


Attorney(s) appearing for the Case

Raymond A. Garcia, New Haven, CT (Constantine G. Antipas, Garcia & Associates, P.C., on the brief), for Plaintiff-Appellant Duraflex Sales & Service Corporation.

James R. Fogarty, Greenwich, CT (Jennifer Paul Cohen, Epstein Fogarty Cohen & Selby LLC, on the brief), for Defendants-Appellees Ippona LLC and Hemingway Center Limited Partnership.

Before: VAN GRAAFEILAND, WINTER, and JACOBS, Circuit Judges.


JACOBS, Circuit Judge:

The federal and state issues of law on this appeal turn on the priority of liens resulting from the following sequence of events: (1) the filing of a first mortgage lien securing a construction loan; (2) the recordation of a mechanic's lien on the mortgaged premises; (3) the subordination of part of the first mortgage lien in favor of a new lender whose funds were thought sufficient to complete the construction project; (4) the collapse of the...

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