HJH Construction v. Cal. Bank & Trust
This action arises out of a failed real estate development project in Palm Springs, California. P.S. Racquet Club Properties, LLC (Borrower), the owner/developer, borrowed money from Vineyard Bank. Borrower entered into an agreement with plaintiff and respondent HJH Construction, Inc. (HJH) wherein HJH agreed to serve as the general contractor on the project. When Borrower defaulted on the loan, Vineyard Bank attempted to foreclose on the property. Simultaneously, HJH recorded its mechanic’s lien and initiated this action. Subsequently, the FDIC closed Vineyard Bank and sold its interest and liabilities with respect to the loan to Borrower to defendant and appellant California Bank & Trust (Lender). HJH’s action was tried before the court and judgment was entered in its favor, awarding damages, attorney fees and costs. The judgment is based on a stop notice against Lender and foreclosure on mechanic’s lien. Lender appeals.
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