Continental & Commercial Trust & Savings Bank v. Corey Bros. Const. Co.

The appeal in this case presents the question of the priority of lien claimants upon the Big Lost River irrigation system in Idaho. The appellants are, trustees under two certain trust deeds securing bonds to the amount of $2,400,000 on the system. The appellees are mechanic’s lien claimants for work done ■and materials supplied in the construction of said system. The court below found that the mechanic’s liens were entitled to priority over the liens of the bondholders.

In June, 1909, the construction company began the construction of a dam under a contract with the Big Lost River Irrigation Company, an Idaho corporation. The irrigation system was a “Carey Act *979 project/’ arising out of a contract which had been entered into by the state of Idaho with one George S. Speer, of date May 27, 1909, all rights under which were subsequently, with the consent of the state, transferred by Speer to the irrigation company. The work of the construction company upon the dam continued until August 15, 1910, when tire state of Idaho through its State Uaud Board forbade the further prosecution of the work and the further sale of water rights in the projected system, principally on account of…