Lynch v. McCann

OPINION

RABINOWITZ, Justice.

This appeal concerns questions of priority between mechanics’ lienors and beneficiaries under a deed of trust. Appellants Paul and June Lynch, together with Joseph and Margaret Reilly, were partners in the ownership and operation of an Anchorage bar named “Pal Joey.” 1 The Reillys desired to add restaurant facilities to the Pal Joey bar, but the Lynches did not, so the Reillys agreed to buy out the Lynches. The Reillys then borrowed $60,000 from the First National Bank of Anchorage, upon the security of a deed of trust covering all real property and “tenements,…