Ketchum, Konkel, Barrett, Nickel & Austin v. Heritage Mountain Development Co.
Utah Court of Appeals
784 P.2d 1217 (1989)
Heritage (defendant) hired Ketchum (plaintiff), an architecture firm, which began offsite surveying and design work in April; Heritage obtained a loan in June, and the lender Guaranty recorded a trust deed in September, while only offsite design work — no visible onsite construction beyond survey staking — had occurred. When Heritage abandoned the project after losing financing, Ketchum sought to foreclose a mechanic's lien, and Guaranty moved for summary judgment claiming its trust deed had priority since construction hadn't commenced when it was recorded; the trial court agreed, and Ketchum appealed.
Whether offsite work completed in preparation for construction satisfies the commencement-of-work condition required for mechanic's liens to take priority.