Fairbanks-Morse & Co. v. Alaska Palladium Co.

The only question presented for decision on this appeal is one of priority between mortgage liens on mining property and labor liens under the laws of the territory of Alaska. Under the laws of that territory, a lien claim must be filed in the proper office within 30 days after the rendition of the services or the cessation of work, and no such lien shall bind any mining claim or other property for a longer period than 6 months after the same shall have been filed for record, unless suit be brought before a proper court within that time to enforce the same. Sess. Laws Alaska 1915, p. 29.

In this case, suit to enforce the labor liens was instituted within the statutory period, but the mortgagee was not made a party thereto. Suit was likewise instituted within the statutory period to foreclose the mortgages, and the assignees of the lien claims were made parties thereto, but the assignees took no steps in either suit to foreclose their liens as against the mortgagee until after the six-months period had elapsed. Under these facts, as found by the court below, and as otherwise appearing from the record, the liens became null and void as against the mortgagee. It was so held by this…