Harper Reynolds Co. v. Hammond Lumber Co.

This is an appeal from a judgment for the foreclosure of certain mechanics’ liens, and is prosecuted upon the judgment-roll. There is but one question presented by the appeal. The appellant Plaminond Lumber Company claims a priority over the liens of the respondents under a certain trust deed through a breach of the conditions of which it holds a grant deed to the property which is subject to the decree or foreclosure rendered by the trial court.

On April 29, 1915, Fred W. Siegel, as the party of the first part, and Lawrence Holmes, as the party of the second part, entered into an agreement, the entire text of which, after its introductory parts, follows:

The second trust deed mentioned in the agreement was executed by Holmes on May 8, 1915, Siegel being the beneficiary under it, and Holmes then also made and delivered the promissory note for twelve thousand five hundred dollars, for the payment of which the trust deed was security. On the same day Siegel transferred the note and the trust deed to the appellant Hammond Lumber Company, the consideration for the transfer being the agreement' of the latter to pay to Siegel the sum of twelve thousand five hundred dollars in “credits…