IN RE MORTGAGES LTD.

Bankruptcy No. 2:08-bk-07465. Adversary No. 2:09-ap-00424-RJH.

444 B.R. 585 (2011)

In re MORTGAGES LTD., Debtor. Jeffrey C. Stone, Inc. d/b/a summit builders, an Arizona corporation, Plaintiff, v. Central and Monroe, L.L.C., an Arizona limited liability company; et al., Defendants. Summers Group, Inc. d/b/a Rexel Phoenix Electric, a corporation, Cross-Claimant/Counter-Claimant, v. Central and Monroe, L.L.C., an Arizona limited liability company; Cross-Defendants; and Jeffrey C. Stone, Inc. d/b/a Summit Builders, an Arizona corporation, Counter-Defendant and related counterclaims and cross claims.

United States Bankruptcy Court, D. Arizona.

February 15, 2011.


Attorney(s) appearing for the Case

Todd M. Adkins , Jennings, Strouss & Salmon, Phoenix, AZ, for Mortgages, Ltd.

Bryan A. Albue , Sherman & Howard LLC, Phoenix, AZ, for KCG, Inc. dba Rew Materials, Jeffrey C. Stone, Inc. d/b/a Summit Builders Construction Co.

Michael P. Anthony , Carson Messinger Elliott et al., Phoenix, AZ, for Harold S. Jalowsky & Thelma D. Jalowsky, Trustees of Jalowsky Trust.

Andrew V. Banas , Seyfarth Shaw LLP, Chicago, IL, for G. Grant Lyon, Radical Bunny, LLC.

Patrick R. Barrowclough , Atkinson, Hamill & Barrowclough, P.C., Phoenix, AZ, for Chuck Niday, Trustee of Ross Verne Family Trust, pro se.

Christopher H. Bayley , Snell & Wilmer, L.L.P., Phoenix, AZ, for Central & Monroe, LLC, Osborn III Partners, LLC.

Michael F. Beethe , Bonnett, Fairbourn, Friedman & Balint PC, Phoenix, AZ, for Foothills Plaza IV, LLC.

Douglas F. Behm , Douglas F. Behm, PLLC, Scottsdale, AZ, for Douglas Frederick Behm.

Steven N. Berger , Engelman Berger, P.C., Phoenix, AZ, for Engelman Berger, P.C., Tempe Land Company, LLC.

Allen B. Bickart , Allen B. Bickart PC, Prescott, AZ, for Koumbas L.L.C., Ali Khan, Allen B. Bickart, Arianthi Zistatsis, Carol Mahakian, Carolyn A. Bickart, Debbie Greiff, Lisa Khan, Martin Reiss, Minas Zistatsis, Nicholas Esposito, Vic Rubin, Vickie Greiff, Adele Abrahams, Kim Westberg, Laverne Westberg, Leo P. Malone, Wendy Abrahams.

Michael C. Blair , Baird Williams & Greer LLP, Phoenix, AZ, for National Retail Development Partners I, LLC.

Edward H. Britt , Britt Law Group PC, Scottsdale, AZ, for CECO Concrete Construction, LLC.

Garland Allen Brown , WBPP, PLLC, Scottsdale, AZ, for Stratera Portfolio Advisors, LLC, Greenberg, Traurig LLP.

Robert Caley Brown , Mariscal, Weeks, McIntyre et al., Phoenix, AZ, for Gold Creek, Inc.

Steven J. Brown , Steve Brown & Associates, LLC, Phoenix, AZ, for AMH Investments LLC, Ashley M. Coles Family Trust, Ashley M. Coles, Trustee, First Trust Company of Onaga, Custodian FBO Ashley M. Coles IRA, Scott and Ashley Coles Charitable Foundation, Inc.

Shane D. Buntrock , Rowley Chapman Barney & Buntrock, Ltd., Mesa, AZ, for T & N Living Trust.

Todd A. Burgess , Gallagher & Kennedy, Phoenix, AZ, for Mortgages Ltd., Stratera Portfolio Advisors, LLC.

Erin E. Byrnes , Graif, Barrett & Matura, P.C., Phoenix, AZ, for Jeffrey C. Stone, Inc. d/b/a Summit Builders Construction Co.

Michael W. Carmel , Michael W. Carmel, Ltd., Phoenix, AZ, for Vanderbilt Farms, LLC., S. M. Coles, L.L.C.

Christopher Ryan Chicoine , Aiken Schenk Hawkins & Ricciardi, Phoenix, AZ, for HH 20 LLC, Cheryl Faas, Eric Faas.

John R. Clemency , Gallagher & Kennedy PA, Phoenix, AZ, for Mortgages Ltd., MCA Financial Group, Ltd., Secured Capital Management Co., LLC, Stratera Portfolio Advisors, LLC.

Jerry L. Cochran , Cochran Law Firm, PC, Phoenix, AZ, for Metropolitan Lofts, L.L.C., GP Properties Carefree Cave Creek, LLC, MK Custom Residential Construction, LLC, McKinley Lofts, LLC, 4633 Van Buren, L.L.C., City Lofts, L.L.C., Downtown Communities Builders Limited Partnership, 2440, L.L.C., TA Investment LLC, Blackeye Capital, L.L.C.

Scott B. Cohen , Engelman Berger, P.C., Phoenix, AZ, for Arizona Bank & Trust c/o Scott B. Cohen Engelman Berger, P.C.

Daniel P. Collins , Collins, May, Potenza, Baran & Gillespie, Phoenix, AZ, for William Hall c/o Daniel P. Collins, Collins, May, Potenza, Baran & Gillespie.

Joseph E. Cotterman , Gallagher & Kennedy, P.A., Phoenix, AZ, for William H. Parker Family Trust, Susan Hoffland, Timothy Hoffland, William H. Parker, WMS Fixed Income Fund I LLC, WMS Fund Management, LLC, Phil Sollomi, AZPB REM Limited Partnership.

James E. Cross , Osborn Maledon P.A., Phoenix, AZ, for Rightpath Limited Development Group, LLC, et al.

Terry A. Dake , Terry A. Dake, Ltd., Phoenix, AZ, for Penny Hardaway Investments, LLC.

John J. Dawson , Quarles & Brady LLP, Phoenix, AZ, for Southwest Value Partners Finance I, LLC, Southwest Value Partners Fund XIV, LP.

Adam B. Decker , Jackson White PC, Mesa, AZ, for Farnsworth Wholesale Co.

J. Matthew Derstine , Roshka DeWulf & Patten, PLC, Phoenix, AZ, for Mortgages Ltd., Roshka DeWulf & Patten.

Jonathan A. Dessaules , Dessaules Law Group, Phoenix, AZ, for Horizon Consulting, Inc.

Dean M. Dinner , Nussbaum Gillis & Dinner, P.C., Scottsdale, AZ, for Official Committee of Unsecured Creditors, ML Liquidating Trust.

Mark J. Dorval , Stradley Ronon Stevens & Young LLP, Philadelphia, PA, for Kevin T. O'Halloran, ML Liquidating Trust.

Marc S. Drier , Drier & Dieter Law Office, Jersey Shore, PA, for Kay A. Kuntz Family Trust.

Van C. Durrer, II , Skadden Arps Slate Meagher & Flom LLP, Los Angeles, CA, for HML, LLC.

David Wm. Engelman , Engelman Berger, P.C., Phoenix, AZ, for Tempe Land Company, LLC, Engelman Berger, P.C., pro se.

Donald F. Ennis , Snell & Wilmer LLP, Phoenix, AZ, for Central & Monroe, LLC, Osborn III Partners, LLC, 44th & Camelback Property, LLC, 70th Street Property, LLC, Portales Place Property, LLC, Sun Valley Masonry, Inc.

Jessica L. Fainman , Schulte Roth & Zabel LLP, New York, NY, for Goldenbridge Acquisition Holdings II, LLC.

Bruce Stanley Feder , Feder Law Office PA, Phoenix, AZ, for Bruce Feder.

Don C. Fletcher , Lake and Cobb, Tempe, AZ, for The Sorensen Companies.

S. Cary Forrester , Forrester & Worth, PLLC, Phoenix, AZ, for The Lewis Trust, The Underwood Trust.

Dewain D. Fox , Sherman & Howard L.L.C., Phoenix, AZ, for Official Committee of Investors.

Shelton L. Freeman , Deconcini McDonald Yetwin & Lacy PC, Scottsdale, AZ, for Radical Bunny, LLC, Mortgages Ltd., G. Grant Lyon, Chapter 11 Trustee for Radical Bunny, LLC, G. Grant Lyon, Chapter 11 Trustee.

Donald L. Gaffney , Snell & Wilmer, L.L.P., Phoenix, AZ, for Central & Monroe, LLC, KGM Builders, Inc., Osborn III Partners, LLC, 44th & Camelback Property, LLC, 70th Street Property, LLC, Portales Place Property, LLC.

Martin R. Galbut , Galbut & Galbut PC, Phoenix, AZ, for Greenberg, Traurig LLP.

Margaret A. Gillespie , Collins, May, Potenza, Baran & Gillespie, Phoenix, AZ, for Rexel Phoenix Electric.

Scott R. Goldberg , Schian Walker, P.L.C., Phoenix, AZ, for Ad Hoc Committee of Investors in the Value-To-Loan Opportunity Fund I L.L.C., Official Committee of Investors in the Value-To-Loan Opportunity Fund I L.L.C., FTI Consulting, Inc.

Steven M. Goldstein , Sacks Tierney PC, Scottsdale, AZ, for BRLS Acorn Family Ltd. Partnership, Louis Shapiro, Lucille Shapiro.

Grant Goodman , Goodman, PA, Phoenix, AZ, for Grant Harry Goodman Orion Real Estate Co., LLC.

Gary A. Gotto , Keller Rohrback, PLC, Phoenix, AZ, for Mortgages Ltd. 401(k) Plan.

Jay R. Graif , Graif, Barrett & Matura, P.C., Phoenix, AZ, for Jeffrey C. Stone, Inc. d/b/a Summit Builders Construction Company.

Gabriel G. Green , Archer Norris, PLC, Los Angeles, CA, Rightpath Limited, LLC.

Joshua T. Greer , Fennemore Craig PC, Phoenix, AZ, for ML Manager LLC.

D. Lamar Hawkins , Aiken Schenk Hawkins & Ricciardi PC, Phoenix, AZ, for Dick Dijkman, Tempe Land Company, LLC.

John J. Hebert , Polsinelli Shughart, P.C., Phoenix, AZ, for Jeffrey A. Newman.

Keith L. Hendricks , Fennemore Craig PC, Phoenix, AZ, for Official Committee of Investors Fennemore Craig, P.C., ML Manager LLC.

Richard Henry Herold, Jr. , Hinshaw & Culbertson LLP, Phoenix, AZ, for Irwin Union Bank, F.S.B.

Jonathan E. Hess , Office of the U.S. Trustee, Phoenix, AZ, for U.S. Trustee.

Gerald T. Hickman , Jardine Baker Hickman & Houston PLLC, Phoenix, AZ, for Mayer Hoffman McCann P.C.

David Jeffrey Hindman , Mesch Clark & Rothschild PC, Tucson, AZ, for Leah Lewis and Robert Facciola, Oxford Investors, Oxford and Investor Group.

Kerry Hodges , Jennings Strouss And Salmon PLC, Phoenix, AZ, for Mortgages Ltd.

Helen R. Holden , Gerstman Holden PLLC, Phoenix, AZ, for The Paul G. Johnson Co.

Michael J. Holden , Holden Willits Murphy PLC, Phoenix, AZ, for JEC Contracting Corp., West Coast Glass & Mirror Co., Inc.

Kami M. Hoskins , Greenberg Traurig LLP, Phoenix, AZ, for Stratera Portfolio Advisors, LLC, Secured Capital Management Co., LLC.

Nicolas B. Hoskins , Fennemore Craig, Phoenix, AZ, for Official Committee of Investors.

Mark C. Hudson , Schian Walker, P.L.C., Phoenix, AZ, for FTI Consulting, Inc.

Daniel L. Hulsizer , Carson Messinger PLLC, Phoenix, AZ, for Old World Tile & Marble Co., Inc.

Jonathan P. Ibsen , Jaburg & Wilk, PC, Phoenix, AZ, for Ann H. Flaherty.

Dillon E. Jackson , Foster Pepper & Shefelman, Seattle, WA, for Foster Pepper PLLC, pro se.

William S. Jenkins , Myers & Jenkins, Phoenix, AZ, for Shawn Marion, ML Liquidating Trust.

Carolyn J. Johnsen , Jennings, Strouss & Salmon, P.L.C., Phoenix, AZ, for Mortgages Ltd., Jennings, Strouss & Salmon.

Kevin M. Judiscak , Engelman Berger, P.C., Phoenix, AZ, for Tempe Land Company, LLC.

Jeffrey S. Kaufman , Jeffrey S. Kaufman, Ltd., Scottsdale, AZ, for Custodian FBO Jeffrey S. Kaufman Beneficiary for Samuel Kaufman IRA, FBO Marcy L. Kaufman Beneficiary for Samuel Kaufman IRA, First Trust Company of Onaga, The Kaufman Family Living Trust, The Samuel W. Kaufman Living Trust, Jeffrey S. Kaufman, Marcy L. Kaufman.

Christopher R. Kaup , Tiffany & Bosco, P.A., Phoenix, AZ, for Mountain Funding, L.L.C.

Jordan A. Kroop , Squire, Sanders & Dempsey (US) LLP, Phoenix, AZ, for G. Grant Lyon, Chapter 11 Trustee.

Alisa C. Lacey , Stinson Morrison Hecker LLP, Phoenix, AZ, for Oxford and Investor Group.

Craig M. Lachance , Baird, Williams & Greer, Phoenix, AZ, for National Retail Development Partners I, LLC, PDG Los Arcos, LLC.

Michael P. Lane , Lane & Nach, P.C., Phoenix, AZ, for Dale D. Ulrich.

Kent A. Lang , Lang Baker & Klain, PLC, Scottsdale, AZ, for Sierra Pacific Industries, Inc.

Sandra W. Lavigna , U.S. Sec. And Exchange Commission, Los Angeles, CA, for U.S. Sec. and Exchange Commission.

Christopher A. Lavoy , Ridenour Hienton & Lewis, PLLC, Phoenix, AZ, MKG Enterprises Limited Partnership, Aviva Gold, Dan and Emily Kingston, Marc and Karen Goldblatt.

Larry S. Lazarus , Lazarus & Associates, PC, Phoenix, AZ, for Lazarus & Associates, P.C.

Richard H. Lee , Law Offices of Richard H. Lee, Phoenix, AZ, for Revocable Trust of Irene Ruth Ahearn.

Stanford E. Lerch , Lerch & Associates, PC, Scottsdale, AZ, for Howard Farkash.

Richard M. Lorenzen , Perkins Coie LLP, Phoenix, AZ, for Goldenbridge Acquisition Holdings II, LLC, Official Committee of Unsecured Creditors.

Scott A. Malm , Gust Rosenfeld P.L.C., Phoenix, AZ, for ML Manager LLC.

Margaret M. Mann , Sheppard Mullin Richter & Hampton LLP, San Diego, CA, for Maryland Way Partners.

Matthew J. Mansfield , Ballard Spahr Andrews & Ingersoll, Phoenix, AZ for Sun Valley Masonry, Inc.

Nancy J. March , Deconcini McDonald Yetwin & Lacy, P.C., Tucson, AZ, for Radical Bunny, LLC.

Thomas J. Marlowe , Law Offices of Thomas J. Marlowe, Phoenix, AZ, for Thomas Joseph Marlowe, Todd Stuart Brown.

Matthew H. Mason , Carson Messinger Elliott Laughlin et al., Phoenix, AZ, for ML Liquidating Trust.

Jeffrey C. Matura , Graif Barrett & Matura, PC, Phoenix, AZ, for Jeffrey C. Stone, Inc. d/b/a Summit Builders Constr. Co., American General Life Ins. Co.

David Anthony McCarville , McCarville Law Offices PLC, Litchfield Park, AZ, for Normark Farms.

J. Lawrence McCormley , Tiffany & Bosco PA, Phoenix, AZ, for Universal Equity Group.

Kevin 2 McCoy , Kelly McCoy, PLC, Phoenix, AZ, for Kevin T. O'Halloran.

Ronald W. Meyer , Law Offices of Ronald W. Meyer, Phoenix, AZ, for Oxford Investors.

Howard C. Meyers , Burch & Cracchiolo, P.A., Phoenix, AZ, for Steele Foundation, Inc., MCA Financial Group, Ltd.

Robert J. Miller , Bryan Cave LLP, Phoenix, AZ, for The Hawkins Group, Rev Op Group, Sternberg Enterprises Profit Sharing Plan, Bear Tooth Mountain Holdings, LLP, Morley Rosenfield, M.D. P.C. Restated Profit Sharing Plan, Pueblo Sereno Mobile Home Park L.L.C.

Ethan Bennett Minkin , Ballard Spahr LLP, Phoenix, AZ, for Arizona Bank & Trust.

Thomas S. Moring , Pak & Moring, Scottsdale, AZ, for Mortgages Ltd. 401(k) Plan.

Jon S. Musial , Law Office Of Jon S. Musial, Scottsdale, AZ, for Performance Contracting, Inc.

Adam B. Nach , Lane & Nach, P.C., Phoenix, AZ, for MCA Financial Group, Ltd.

Mark Allen Nadeau , DLA Piper LLP (US), Phoenix, AZ, for Mortgages Ltd.

William Novotny , Mariscal, Weeks, McIntyre, & Friedlander, Phoenix, AZ, for Mariscal, Weeks, McIntyre & Friedlander, P.A., DLA Piper, LLC.

Randy Nussbaum , Nussbaum Gillis & Dinner, P.C., Scottsdale, AZ, for Official Committee of Unsecured Creditors.

Sean P. O'Brien , Gust Rosenfeld P.L.C., Phoenix, AZ, for Gust Rosenfeld as Ordinary Course Professional Mortgages Ltd.

Robert J. Odson , DLA Piper LLP (US), Los Angeles, CA, for Mortgages Ltd.

Bradley David Pack , Engelman Berger PC, Phoenix, AZ, for Tempe Land Company, LLC.

Karen A. Palecek , Palecek & Palecek, P.L.L.C., Scottsdale, AZ, for KGM Builders, Inc.

Steven B. Palmer , Maricopa County Attorney's Office, Phoenix, AZ, for c/o Steven B. Palmer Maricopa County Treasurer.

Richard G. Patrick , U.S. Attorney's Office, Phoenix, AZ, for U.S. Securities and Exchange Commission.

Craig A. Raby , Arizona Attorney General's Office, Phoenix, AZ, for Arizona Department of Financial Institutions.

David N. Ramras , Ramras Law Offices PC, Phoenix, AZ, for Cecile Silverman.

Cathy L. Reece , Fennemore Craig, Phoenix, AZ, for Unofficial Investor Committee, Official Committee of Investors, ML Manager LLC.

James B. Reed , Baird Williams & Greer LLP, Phoenix, AZ, for Allied Building Products Corp., Frazee Industries, Inc.

Christopher Scott Reeder , Reeder, Lu & Green, LLP, Los Angeles, CA, for Rightpath Limited Development Group, LLC, et al., Maryland Way Partners.

Michael T. Reynolds , Phoenix, AZ, for We-Ka-Jassa Investment Fund, LLC— Fort McDowell.

Stuart Bradley Rodgers , Lane & Nach PC, Phoenix, AZ, for MCA Financial Group, Ltd.

Philip R. Rudd , Polsinelli Shughart PC, Phoenix, AZ, for Arizona Bank & Trust.

Thomas J. Salerno , Squire, Sanders & Dempsey (US) LLP, Phoenix, AZ, for G. Grant Lyon, Chapter 11 Trustee for Radical Bunny, LLC.

Joel E. Sannes , Lake & Cobb, PLC, Tempe, AZ, for IES Commercial, Inc. [formerly known as Hatfield Reynolds Electric company (IES)].

Chad L. Schexnayder , Jennings, Haug & Cunningham, LLP, Phoenix, AZ, for HACI Mechanical Contractors, Inc.

Dale C. Schian , Schian Walker, P.L.C., Phoenix, AZ, for Ad Hoc Committee of Investors in the Value-To-Loan Opportunity Fund I L.L.C., Official Committee of Investors in the Value-To-Loan Opportunity Fund I L.L.C., FTI Consulting, Inc.

Gerald L. Shelley , Fennemore Craig, P.C., Phoenix, AZ, for ML Manager LLC.

Sharon B. Shively , Sacks Tierney P.A., Scottsdale, AZ, for Kevin T. O'Halloran.

Robert A. Shull , Mariscal, Weeks, McIntyre & Friedlander, Phoenix, AZ, for Artemus Realty Capital, LLC, Gold Creek, Inc., DLA Piper, LLC (US).

Christopher C. Simpson , Stinson Morrison Hecker LLP, Phoenix, AZ, for Central Cabinet and Supply Company LLC, Gould Evans Goodman Associates LC.

Gerald K. Smith , Lewis & Roca LLP, Phoenix, AZ, for Gerald K. Smith.

G. Peter Spiess , Spiess & Associates PC, Phoenix, AZ, for Lazarus & Associates, P.C.

Robert J. Spurlock , Bonnett, Fairbourn, Friedman & Balint PC, Phoenix, AZ, for Foothills Plaza IV, LLC.

Sean P. St. Clair , Tiffany & Bosco, P.A., Phoenix, AZ, for Mechanical Solutions Inc.

Edwin B. Stanley , Simbro & Stanley, PLC, Scottsdale, AZ, for Stratera Portfolio Advisors, LLC.

Kendall D. Steele , Jardine, Baker, Hickman & Houston, Phoenix, AZ, for Mayer Hoffman McCann P.C.

Lyndon B. Steimel , Law Office of Lyndon B. Steimel, Scottsdale, AZ, for University & Ash, LLC, Roosevelt Gateway LLC, Roosevelt Gateway II LLC and KML Development.

Jase Steinberg , Myers & Jenkins PC, Phoenix, AZ, for Myers & Jenkins, P.C., Shawn Marion.

Bradley Jay Stevens , Jennings, Strouss & Salmon, P.L.C., Phoenix, AZ, for Mortgages Ltd., Jennings, Strouss & Salmon.

John W. Storer, III , Swenson Storer Andrews & Frazelle, Phoenix, AZ, for Otis Elevator Co.

Bryce A. Suzuki , Bryan Cave LLP, Phoenix, AZ, for Rev Op Group, Sternberg Enterprises Profit Sharing Plan, Morley Rosenfield, M.D. P.C., Bear Tooth Mountain Holdings, LLP, Queen Creek XVIII, LLC, Pueblo Sereno Mobile Home Park L.L.C.

Richard Ray Thomas , Thomas Schern Richardson , Mesa, AZ, for Baseline & Val Vista Associates Limited Partnership, Litchfield Road Associates Ltd. Partnership, Eva Sperber-Porter, Bernardo R. Urquieta and Kathleen Smythe de Urquieta, Trustees of The Urquieta Smythe Family Trust dated Dec. 5, 1990 and any amendments thereto, Jan M. Sterling, Trustee of the Jan M. Sterling Living Trust dated Jan. 4, 1995 and any amendments thereto, John C. Vinson and Taeko Vinson, Trustees of the John Charles Vinson Family Trust dated Dec. 3, 1984, and any amendments thereto, Karen E. Lamb a/k/a Karen Chopra, Trustee of the Karen Lamb Living Trust dated Feb. 26, 2007 and any amendments thereto, Kathleen K. Tomasulo, Trustee of the Tomasulo Credit Shelter Irrevocable Trust dated Sept. 16, 1997 and any amendments thereto, Linda A. Reeves, Trustee of the Linda Ann Reeves Trust Dated March 2, 2005, and any amendments thereto, Linda Mayne and Stephen Mayne, husband and wife, Linda Mayne, Trustee of the Mayne and Company Defined Benefit Pension Plan Dated Dec. 31, 2005, and any amendments thereto, Morris A. Kaplan and Carolyn N. Kaplan, Trustees Under the Second Amendment and Restatement of the Morris and Carolyn Kaplan Revocable Trust Dated Oct. 15, 1999, Robert G. Furst, Trustee of the Robert G. Furst & Associates Defined Benefit Pension Plan, Soteria, LLC, an Arizona limited liability co., as lawful transferee and successor in interest to Bruce Dennis Buckley and Alivia Virginia Buckley, Trustees of the Bruce Dennis Buckley and Alivia, Stephen G. Franklin and Donna M. Franklin, Trustees of the Franklin Family Trust dated June 11, 2002 and any amendments thereto, William J. Miller and Sandra B. Miller, Trustees of the Miller Family Trust dated Feb. 7, 2000 and any amendments thereto, Jane A. [IRA Gust.] Bartelme, Jayesh K. [IRA Cust.] Shah, John C. Vinson, Robert G. Furst, Bruce D. Buckley.

Todd B. Tuggle , Jennings, Strouss & Salmon, P.L.C., Phoenix, AZ, for Mortgages Ltd., Jennings, Strouss & Salmon.

Dean C. Waldt , Ballard Spahr Andrews & Ingersoll LLP, Voorhees, NJ, for University & Ash, LLC, Roosevelt Gateway LLC, Roosevelt Gateway II LLC and KML Dev.

Michael R. Walker , Schian Walker, P.L.C., Phoenix, AZ, for FTI Consulting, Inc.

Robert C. Warnicke , Gordon Silver, Phoenix, AZ, for Americapital, LLC.

Ronald E. Warnicke , Gordon Silver, Phoenix, AZ, for ML Liquidating Trust.

Daxton R. Watson , Mack Drucker & Watson PLLC, Phoenix, AZ, for Mortgages Ltd.

Larry Lee Watson , Office of the U.S. Trustee, Phoenix, AZ, for U.S. Trustee.

Lindsi M. Weber , Gallagher & Kennedy, PA, Phoenix, AZ, for William H. Parker Family Trust, Susan Hoffland, Timothy Hoffland, William H. Parker, WMS Fixed Income Fund I LLC, WMS Fund Management, LLC.

Dennis J. Wickham , Seltzer Caplan McMahon Vitek, San Diego, CA, for Southwest Value Partners Fund XIV, LP.

Lawrence E. Wilk , Jaburg & Wilk, P.C., Phoenix, AZ, for Laura Martini.

Rebecca J. Winthrop , Ballard Spahr LLP, Los Angeles, CA, for University & Ash, LLC, Roosevelt Gateway LLC, Roosevelt Gateway II LLC and KML Dev., Mortgages Ltd.


MEMORANDUM DECISION GRANTING PARTIAL SUMMARY JUDGMENT IN FAVOR OF MORTGAGES LTD.

RANDOLPH J. HAINES, Bankruptcy Judge.

The issue here is whether various mechanics' lien claimants, who claim priority dating from the commencement of construction in November 2006, have priority over a construction deed of trust that was recorded in May of 2007. Among other defenses, the construction lender asserts the doctrine of equitable subrogation gives it priority back...

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