Diecke v. Lumber Supply, Inc.

This is an appeal in an action for declaratory judgment brought by the owners against the contractor and various mechanic’s lienholders to establish the owners’ liability under the building contract and the validity and priority of mechanic’s liens filed against the owners’ real estate.

Friedrich P. Diecke and his wife Elizabeth, owners of a lot in Iowa City, contracted with defendant New Homes Realty, Inc. for construction of a home on it for the sum of $25,200. Before commencement of construction plaintiffs obtained a construction loan of $18,900 from Iowa State Bank & Trust Company, Iowa…