Facts

Plaintiff David Granahan is a contractor who performed construction services on a property owned by defendants Paul and Robert Lowry. A construction loan was made by a group of 17 investors through a loan broker. The loan was secured by a deed of trust against the property. Installment payments were made for a period of time and then stopped. Plaintiff sought the balance owed of more than $76,000 from the Lowrys and the investors and when he was not paid, recorded a mechanic's lien claim on Feb. 4, 2008.

On May 3, 2008, plaintiff filed a lawsuit against the Lowrys and unnamed Does. He did not record a lis pendens at that time. Several weeks later, the investors took title to the property through a trustee's sale. In Oct. 2008, plaintiff amended his complaint to add the investors and their loan broker as defendants. Notably, he did not name them as Doe defendants. A lis pendens was recorded at that time.

In Dec. 2008, the property was sold by the investors to defendants Adolf and Karin Trenkenschu. Prior to the close of escrow, the Trenkenschus had actual notice of the recorded lien and lis pendens.

In May 2009, plaintiff again amended his complaint by deleting the investors and broker as defendants and replacing them with the Trenkenschus. Again the Doe amendment procedures were not utilized. However by a motion heard in May 2010, the Trenkenschus, who were already named as defendants, were also added as Doe defendants.

The case was heard by the trial court in a one-day trial in July 2010.

PLAINTIFF'S CONTENTIONS:
Plaintiff contended that the recording of the mechanic's lien in May 2008 along with the actual knowledge of the Trenkenschus that the lien was recorded and foreclosure suit was pending prior to their purchase of the property gave rise to an enforceable lien against their interest in the property. Further, the target of the mechanic's lien was the property itself, not the title of the owner or any subsequent owner.

DEFENDANTS' CONTENTIONS:
Defendants contended that the failure by plaintiff to perfect his mechanic's lien rights against the investors within the 90-day period provided by Civil Code section 3144 and his failure to provide them with constructive notice of the lawsuit by recording a lis pendens prior to their purchase of the property at the trustee's sale meant that they took title to the property as bona fide purchasers free and clear of plaintiff's mechanic's lien rights. Plaintiff might have cured the running of the section 3144 time limit by naming the investors as Does when he added them as defendants but he failed to do so. Defendants claimed that when the investors sold the property to the Trenkenschus they conveyed the same free and clear title that they held.

Result

Judgment for defendants Adolf and Karin Trenkenschu.

Other Information

Plaintiff's motion for new trial was denied on March 8, 2011. Plaintiff will appeal.