BUILDERS KITCHEN & SUPPLY CO. v. PAUTVEIN

No. 97-1780.

601 N.W.2d 72 (1999)

BUILDERS KITCHEN & SUPPLY CO., Appellant, v. Richard W. PAUTVEIN and Janice Jean Pautvein, Appellees.

Supreme Court of Iowa.

October 13, 1999.


Attorney(s) appearing for the Case

Richard K. Updegraff of Brown, Winick, Graves, Gross, Baskerville & Schoenebaum, P.L.C., Des Moines, for appellant.

Steven L. Serck of Ahlers, Cooney, Dorweiler, Haynie, Smith & Allbee, P.C., Des Moines, for appellees.

Considered by CARTER, P.J., and LAVORATO, SNELL, CADY, and SCHULTZ, JJ.


LAVORATO, Justice.

Iowa Code section 572.3 (1997) denies a mechanic's lien to anyone "who, at the time of making a contract for furnishing material or performing labor, or during the progress of the work, take[s] any collateral security on such contract." The issue is whether taking personal guarantees from parties who are not obligated on the contract is taking collateral security within the meaning of the statute. The district court thought so and denied a supplier...

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