Feather River State Bank v. Dudash
A group of investors banded together to finance the construction of a three-story office building. Unbeknownst to the group, their leader purportedly managed to funnel off the proceeds of a $2.45 million construction loan. The messy aftermath of a real estate deal gone wrong spawned this contentious litigation. Numerous parties were not paid for their construction work, and numerous other parties were left holding the proverbial bag as guarantors of the loan.
Plaintiff Center and members Ron Sykora and the Flemings appealed the judgment in favor of Bank. The parties subsequently stipulated to dismissal of the appeal. With the dismissal, we are left with Banks appeal of the judgments declaring the guaranty of completion unenforceable, foreclosing the mechanics lien, and awarding attorney fees in favor of Dudash. Bank contends the court erred in gauging the consideration necessary for enforcement of the guaranty of completion, the court failed to correctly analyze the mechanics lien, and the court abused its discretion in awarding attorney fees. Dudash seeks the recovery of sanctions against Bank. Court affirm the trial courts judgment but deny the request for sanctions.
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