C & L Lumber & Supply, Inc. v. Texas American Bank/Galeria

OPINION

RANSOM, Justice.

Texas American Bank appeals from a decision that its mortgages on two tracts of Ruidoso land are void and that, in a proceeding to foreclose mechanics’ and materialmen’s liens on the property, the priority of such resulting equitable mortgage liens as were found by the court follows those of the other lien claimants. We affirm.

In August 1980, Joe McDermott, while married to Dixie McDermott, purchased from Briscoe and Myrl West a 1.7 acre tract (small tract) of land adjacent to the racetrack in Ruidoso. McDermott paid $10,000 in cash and entered into a real estate…