Question
D'Orsay International Partners, a developer, owned property that it planned to develop into a 176-room hotel and retail complex. In 2001, D'Orsay entered into an
D'Orsay International Partners, a developer, owned property that it planned to develop into a 176-room hotel and retail complex. In 2001, D'Orsay entered into an agreement with Summit, a licensed general contractor. Over the next two years, Summit provided design-related services worth almost $850,000. However, construction on the D'Orsay project never started, because the financing fell through. No building permit was obtained, and no supplies were ever delivered to the property. In 2003, Summit recorded a mechanic's lien for $850,000 against D'Orsay's property. D'Orsay sought to have the mechanic's lien removed, because Summit never actually did any work on the property itself.
Was the mechanic's lien valid or was Summit entitled to a design lien instead of a mechanic's lien?
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