Supreme Court of Arkansas
May Construction Company, Inc. v. Town Creek Construction & Development, LLC Chambers Bank of North Arkansas And…
June 23, 20112011 Ark. LEXIS 263
Summary
The court held that commencement of construction under the materialmen’s-lien statute is determined objectively by visible activity that would lead a reasonable person to believe construction has begun or will soon begin, not by the parties’ subjective intent. Because the circuit court applied the wrong legal standard, the court reversed and remanded the priority determination. It affirmed the circuit court’s lien-amount finding because that factual determination was not clearly erroneous.