Herrman v. Daffin

RUARK, Judge.

This case arises out of the fact that an owner (Daifin) paid his contractors (Altman and Gibson Construction Company) the balance on construction price of a residence. The contractors in turn paid a portion of the money to their materialmen (Herrman Lumber Company, a partnership), who applied such payment to other,' and older, indebtedness due them from the contractors, thus leaving exposed and unpaid their debt for the materials which went into the Daifin house. Later the material-men filed suit to foreclose a mechanic’s lien on this house.

At a pretrial conference a special jury…