December 1st, 2011

JMA Architects v. Vestin Realty Mortgage I, Inc., et al.

Early Sullivan appeared before the Nevada Supreme Court on behalf of Vestin Realty Mortgage I, Inc. The state’s highest court upheld a trial court’s order granting Vestin summary judgment. The action involved the validity of mechanic’s lien claims and JMA’s purportedly unpaid architectural fees. JMA asserted that its mechanic’s liens had priority over Vestin’s deeds of trust because Vestin had actual knowledge of JMA’s work, and that the 2003 revisions to Nevada’s mechanic’s lien statute created an actual knowledge requirement. In a question of first impression regarding the impact of the 2003 revisions, the Nevada Supreme Court agreed with our appellate briefing that the 2003 revisions did not create an actual knowledge requirement. The Court, instead, reaffirmed the requirement that for a mechanic’s lien to have priority, work must be visible on the property.