Community Lumber Co. v. California Publishing Co.

The question- presented hy this appeal is one as to the'priority between certain mechanics’ liens and two certain deeds of trust, the first made to secure building funds for the erection of a building and the second made to pay the purchase price of the lot upon which the building was to be erected.

Prior to June 1, 1925, defendant California Publishing Company desired to purchase a certain building lot owned by defendant Keeney. On May 29, 1925, a building contract was executed by said purchaser and the Union Engineering Company, which provided that the owner agreed to execute forthwith and deliver to the superintendent promissory notes in his favor aggregating $22,500, $10,000 thereof to mature on or before January 1, 1926, to be'seeured by a deed of trust, “which shall be and constitute a first lien on the property above described, together with the improvements thereon”, and the remaining $12,500 to be covered by notes in denominations as requested by said superintendent, $6,000 thereof to mature August 1, 1925, and $6,500 September 1, 1925, the entire $12,500 in notes to be secured by deed of trust “which shall be a third lien on the above mentioned property and improvements…