S. B. Mitford v. Dorothy Prior, Trustee in Bankruptcy, Etc., Australaska Corporation v. Gustav Johnson and Dorothy Prior, Etc.

This action was brought in a court of the State of Alaska by appellee Johnson to foreclose a mechanic's lien on real property making up the Crestview Village Subdivision in the Anchorage Recording District. The suit was removed to the federal district court on petition of the United States, which claimed a tax lien.

Appellant Australaska attacks the portions of the judgment which (1) upheld Johnson’s mechanic’s lien, and (2) granted priority to a trust deed held by First State Equity Company over a similar deed held by Australaska. Appellant Mitford appeals from the portion of the judgment which (3) held First State Equity’s trust deed valid.

I. Johnson’s mechanic’s lien

Johnson, a civil engineer, claims a lien under Alaska Statutes § 34.35.050 for engineering services performed in connection with the planning and development of Crestview Village Subdivision.

A. Australaska contends that Johnson’s claim was not timely filed. Alaska Statutes § 34.35.070 requires that a lien claim be filed within ninety days after the claimant “ceases to labor” on “his contract or the alteration or repair.” Johnson’s claim was filed June 5, 1961, and states “the last work was performed on the…