In re Williamson, 43 B.R. 813 (Bankr.D.Utah)
PUBLISHED
See 186.pdf
The court addressed the priority of various liens against debtor's property in order to determine entitlement to proceeds of the property's sale. The court invalidated the majority of mechanic's lien claims on the basis that their claims arose by statute and their lien forms failed to satisfy the requirements of that statute. Furthermore, the statutory time limit for filing mechanic's liens had expired. Therefore, the mechanic's liens were invalidated, and a subsequently filed trust deed was entitled to priority over those claims. The court also found that bank's first trust deed included a subsequent advance of additional funds to debtor because both the note and trust deed contained clear language that the parties intended that result. Finally, the court held that debtor's homestead exemption took priority over all liens and encumbrances on the property, except "security interests," which can only be created voluntarily. The mechanic's lien ruling in this case was, at least arguably, invalidated by the district court's Sorenson opinion at 186.pdf, which found that mechanic's liens needed to be signed and verified, but were not necessarily rendered invalid by failure to sign the verification block on the form's reverse side.