Benj. Franklin Federal Savings & Loan Ass'n v. Hallmark, Inc.

This is a suit to foreclose a mortgage held by plaintiff which secured a residence construction loan made to the defendant Hallmark, Inc. Defendants Jack Largent Co., Inc., and T So J Masonry, Inc., are each the holder of a mechanic’s and materialmen’s lien upon the improvement pursuant to ORS 87.010 (1). ① The two lienors (hereinafter referred to as defendants) have appealed from a decree of the trial court holding that plaintiff’s mortgage has priority over their liens.

Plaintiff loaned the money to Hallmark to construct the improvement. Defendants contracted directly with Hallmark to do the…