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JUDSON v. TERRY MORGAN CONSTRUCTION, INC.

542 P.2d 1010 (1975)

Leonard B. JUDSON et al., Plaintiffs, v. TERRY MORGAN CONSTRUCTION, INC., an Oregon Corporation, Defendant-Respondent, Archie W. Hovey et al., Defendants, Ronald L. Marek, Trustee in Bankruptcy for Terry John Morgan and Linda Sue Morgan, Defendant-Respondent, William E. Brickey, Trustee for First Federal Savings and Loan Association of Willamette Valley, Defendant-Appellant.

Supreme Court of Oregon.

Decided November 28, 1975.

Attorney(s) appearing for the Case

James N. Westwood, Portland, argued the cause for appellant, William E. Brickey, Trustee for First Federal Savings and Loan Association of Willamette Valley. With him on the briefs were Miller, Anderson, Nash, Yerke & Wiener and John R. Bakkensen, Portland.

Todd G. Brown, Corvallis, argued the cause for respondent, Ronald L. Marek, Trustee in bankruptcy for Terry John Morgan, Linda Sue Morgan and Terry Morgan Construction, Inc. With him on the brief were McClain & Brown, Corvallis.

James Eickelberg, Corvallis, filed a brief for respondents Hovey and Benson.

Before McALLISTER, P.J., and DENECKE, HOLMAN, TONGUE, HOWELL and BRYSON, JJ.

TONGUE, Justice.

This is a suit to foreclose a mechanic's lien against real property owned by Terry Morgan Construction, Inc., a bankrupt corporation. Among the defendants was Home Federal Savings and Loan Association, which filed an answer and cross-complaint to foreclose a deed of trust executed by Terry Morgan and Linda Morgan as security for a $30,000 loan.1 Home Federal appeals from a decree declaring that it has no interest in the...

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