Thigpen v. Thigpen

These consolidated cases present yet more litigation resulting from the savings and loan crisis. The cases stem from an attempt by a builder to obtain priority over a lender in connection with foreclosure on certain real property. Appellant Twin Construction, Inc. ("Twin") originally commenced an action in a Florida state court against Vernon Savings and Loan Association ("Old Vernon") and other defendants seeking to foreclose upon a mechanics lien resulting from work performed on construction of a shopping center. Old Vernon, on the other hand, commenced its own action in a Florida state court in order to foreclose upon notes and mortgages and to enforce guarantees furnished in exchange for loans for the acquisition, development, and construction of the shopping center. Subsequently, the Federal Home Loan Bank Board appointed the Federal Savings and Loan Insurance Corporation ("FSLIC") as receiver for Old Vernon, and FSLIC transferred substantially all of Old Vernons assets to New Vernon. New Vernon, too, became insolvent, and FSLIC was appointed receiver. After FSLIC removed the above actions to federal court, the district court consolidated the cases. Concluding that FSLIC was entitled to priority as a matter of law, the district court then granted FSLICs motion for summary judgment in both consolidated cases. This appeal followed.