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Mike Brown Receives Second Affirmance in Multiparty Litigation Case

News | June 5, 2014

Kutak Rock attorney Mike Brown led a team that received affirmance from the State of Kansas Court of Appeals in favor of the firm’s bank client in the second case related to the construction of an apartment complex in Topeka, Kansas.

The client is the trustee of $15.715 million in bonds that were issued for the construction of the apartment complex. The owner of the apartments defaulted on the bonds and also failed to pay the mechanics’ liens held by the general contractor of the project.

The general contractor sued multiple parties, and claimed the firm’s client was in breach of contract and unjust enrichment, seeking damages in excess of $1 million. In early 2013, the Shawnee County District Court ruled in favor of the client on all claims against it by the general contractor, finding that the bank was not liable for payment of the contractor’s liens in the first case. On May 2, 2014, the Kansas Court of Appeals affirmed the district court’s decision to grant summary judgment to the client.

In the second case the general contractor filed against the firm’s client, they claimed the general contractor’s mechanics’ lien rights were the paramount lien against the property. The Shawnee County District Court again ruled in favor of the client, finding they were entitled to foreclose against the property and its mortgage had priority over the general contractor’s mechanics’ liens. The case was also taken by the Kansas Court of Appeals and on May 23, 2014, the court affirmed the district court’s decision determining the bank had standing to foreclose on the mortgage.

To read the affirmation from the State of Kansas Court of appeals, click the link below.