Tracy Price Associates v. Hebard

The central issue on this appeal is whether a security interest under a trust deed is subject to a mechanic’s lien for architectural services, rendered pursuant to a contract with the owner, for preparation of plans for improvements to be constructed on the land where the trust deed was recorded after the architect commenced preparation of plans but where actual physical construction of the contemplated improvements never commenced. A subsidiary question is presented relating to priorities of claims to the proceeds of a trust deed foreclosure sale.

The facts giving rise to the architect’s…