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April, 2020- Up in Smoke: Mechanic’s Lien Foreclosure Snuffs Out Marijuana Processing Operation

In 2018, a Pueblo general contractor entered a fixed price contract with High Desert Cannabis, LLC d/b/a HDC, LLC (“HDC”) to construct a marijuana processing facility in Avondale.  When HDC failed to pay over $435,000, the contractor filed a mechanic’s lien and foreclosed on it.  The contractor also sought judgment against HDC under the contract.  Although HDC did not dispute the lien claim or the amount owed, to avoid judgment being entered against it under the contract, HDC claimed it was not a party to the contract it had executed.  Rather, a similarly named entity, which conveniently was judgment proof, was the contracting party.  After a trial to the Court in which the contractor was represented by Karl Berg and Hilary Roland, HDC’s arguments went up in smoke when the Court entered judgment against it based on the contract it executed.  With interest and attorney’s fees, the total judgment against HDC exceeded $600,000.

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