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HOME LUMBER CO. v. KOPFMANN HOMES, INC.

No. C2-94-172.

535 N.W.2d 302 (1995)

HOME LUMBER CO., petitioner, Appellant, v. KOPFMANN HOMES, INC., et al., Defendants, MidAmerica Bank Maplewood, Respondent, Sullivan Services, Inc., Pella Products, Inc., petitioners, Appellants.

Supreme Court of Minnesota.

July 28, 1995.

Attorney(s) appearing for the Case

Todd A. Sattler, Lang, Pauly & Gregerson, Ltd., Minneapolis, for Home Lumber Co.

Robert R. Roos, Minneapolis, for Sullivan Services, Inc.

Mark Anderson, Wagner, Falconer & Judd, Minneapolis, for Pella Products, Inc.

Michael D. Quayle, Dudley Younkin, Merrigan, Johnson, Quayle & Younkin, Minneapolis, for MidAmerica Bank Maplewood.

Bradley N. Beisel, Scholle & Beisel, Ltd., Minneapolis, for amicus curiae MN Land Title Assoc.

Heard, considered and decided by the court en banc.

OPINION

GARDEBRING, Justice.

In this case, we consider whether mortgage loan disbursements made subsequent to the attachment of mechanics liens have priority over those liens. Kopfmann Homes, Inc. (Kopfmann) obtained a construction loan mortgage from MidAmerica Bank Maplewood (Bank) in order to build a residence for resale. In the construction loan agreement, the Bank was authorized to disburse funds for the construction project, pursuant to its inspector...

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