Valiant Idaho v. VP Inc.

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This appeal arose out of a failed golf course development project known as “The Idaho Club” undertaken by Pend Oreille Bonner Development, LLC (“POBD”). POBD took out several loans to finance the development of The Idaho Club and subsequently defaulted on them, failed to pay mechanics and materialmen for their services, and failed to pay real property taxes. During this litigation, three lending companies, R.E. Loans, LLC, Pensco Trust Co. and Mortgage Fund ’08 assigned and/or sold all of their right, title, and interest in their three loans with POBD to Valiant Idaho, LLC (“Valiant”). The loans were secured by three mortgages that provided parcels of The Idaho Club as collateral. VP, Inc. had an interest in certain lots containing water and sewer infrastructure (the lagoon lots and the well lots) and it held utility easements for the same. VP obtained its interest in The Idaho Club from quitclaim deeds to four parcels and an alleged equitable servitude and prescriptive easements. The Idaho Supreme Court determined VP did not err in granting partial summary judgment against VP as to its liens' priority, nor did it err as to Valiant's third motion for summary judgment or in granting Valiant's temporary restraining order and injunction. The Court determined VP waived its right to challenge a second decree of foreclosure on appeal. The Supreme Court affirmed the district court except as to the issue of discretionary costs, which was vacated and remanded for further proceedings. View "Valiant Idaho v. VP Inc." on Justia Law