Irwin Concrete, Inc. v. Sun Coast Properties, Inc.
Washington Court of Appeals
653 P.2d 1331 (1982)
Olympic Mall Company borrowed from Continental, Inc. (defendant) to develop land, with the loan agreement securing future advances subject only to Continental confirming the funds were used for property improvements, and Continental recorded its deed of trust on June 9, 1972. Hernando Chaves and Associates (plaintiff) began engineering work on the property a week later, on June 16, 1972, giving rise to its mechanic's lien; after Olympic defaulted and Continental bought the property at a trustee's sale, Chaves argued its lien was senior to Continental's mortgage and survived the sale, but the trial court found the future advances were mandatory for Continental and ruled against Chaves.
Whether a mortgage securing future advances has priority over a mechanic's lien that accrues after the mortgage is recorded, when the future advances are not optional.