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Case No. 20-0972

Borst Brothers Construction, Inc. et al.
v.
Finance of America Commercial, LLC

The court has granted further review in this appeal and cross-appeal from consolidated foreclosure actions raising issues of lien validity and priority, guarantor liability, attorney fees, hearsay, and notice. Finance of America Commercial, LLC (FAC) and Thomas Dostal Developers seek further review of the court of appeals decision affirming the district’s judgment of foreclosure in favor of FAC, and the enforcement of Borst Brothers Construction Inc.’s mechanic’s liens and that they have priority over FAC’s mortgages. The court of appeals further affirmed the district court’s enforcement of Kelly Concrete Company, Inc.’s mechanic’s liens and the conclusion that these mechanic liens are superior to Borst’s mechanic liens. The award of attorney fees in favor of Borst, Kelly, and FAC was also affirmed. The court of appeals reversed the district court’s conclusion that the guaranty agreements are unenforceable against Randy Dostal individually.

County:
Linn

Appellees

Borst Brothers Construction, Inc. et al.

Appellant

Finance of America Commercial, LLC

Attorneys for Appellees

Matthew L. Preston
Brad Brady
William Roemerman
S.P. Devolder

Attorneys for Appellant

John Fatino

Court of Appeals

Court of Appeals Opinion

Opinion Number:
20-0972
Date Published:
Aug 18, 2021
Summary

            Appeal from the Iowa District Court for Linn County, Mary E. Chicchelly, Judge.  AFFIRMED IN PART AND REVERSED IN PART ON APPEAL; AFFIRMED ON CROSS-APPEAL.  Heard by Vaitheswaran, P.J., Schumacher, J., and Blane, S.J.  Opinion by Vaitheswaran, P.J.  (14 pages)

            Finance of America Commercial, LLC (FAC) appeals the district court’s trial ruling and award of attorney fees.  Thomas Dostal Developers, Inc., and Randy T. Dostal cross-appeal the district court’s ruling and award of attorney fees.  OPINION HOLDS: We affirm the district court’s judgment of foreclosure in favor of FAC.  We affirm the district court’s enforcement of the mechanic’s liens claimed by Borst Bros. Construction, Inc. (Borst) and the court’s conclusion that they have priority over FAC’s mortgages.  We affirm the district court’s enforcement of Kelly’s mechanic’s liens and the court’s conclusion that they are superior to Borst’s mechanic’s liens.  We affirm the attorney fee awards in favor of Borst, Kelly, and FAC.  We reverse the district court’s conclusion that the guaranty agreements are unenforceable against Randy Dostal individually.

Other Information

Date Further Review is Granted:
Jan 28, 2022

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