CHICAGO TITLE INS. CO. v. SHERRED VILLAGE ASSOCIATES

Nos. 82-1657, 82-1658.

708 F.2d 804 (1983)

CHICAGO TITLE INSURANCE COMPANY, et al., Plaintiffs, Appellants, v. SHERRED VILLAGE ASSOCIATES, et al., Defendants, Appellees. CHICAGO TITLE INSURANCE COMPANY, et al., Plaintiffs, Appellees, v. SHERRED VILLAGE ASSOCIATES, et al., Defendants, Appellees. Department of Housing and Urban Development, Defendant, Appellant.

United States Court of Appeals, First Circuit.

Decided May 17, 1983.


Attorney(s) appearing for the Case

John W. Philbrick, Portland, Me., with whom Verrill & Dana, Portland, Me., Donald Memmer, and Gladys N. Bryer, Chicago, Ill., were on brief, for plaintiffs, appellants Chicago Title Ins. Co. and New England Merchant's Nat. Bank.

Margaret E. Clark, Atty., Civil Div., Dept. of Justice, Washington, D.C., with whom J. Paul McGrath, Asst. Atty. Gen., Washington, D.C., Richard S. Cohen, U.S. Atty., Portland, Me., Anthony J. Steinmeyer, Atty., Civil Div., Dept. of Justice, and Nancy Christopher, Atty., Dept. of Housing and Urban Development, Washington, D.C., were on brief, for defendant, appellant Secretary of Housing and Urban Development.

Karen B. Lovell, Saco, Me., with whom Charles W. Smith, and Smith & Elliott, P.A., Saco, Me., were on brief, for defendant, appellee Hercoform, Incorporated.

Before COFFIN, Chief Judge, BREYER, Circuit Judge, and MALETZ, Senior Judge.


COFFIN, Circuit Judge.

The issue before us is whether federal law should adopt a state rule of decision governing the relative priority of a mechanics' lien and a mortgage insured by and assigned to the Department of Housing and Urban Development (HUD). We have been charged by the Supreme Court with the responsibility of determining whether the facts of this case are sufficiently different from those in United States v. Kimbell Foods, Inc., 440...

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