The essential question in this case being one of fact, and
notwithstanding the different conclusions reached by the courts
below, this Court, after consideration thereof, holds that the
evidence sustains the conclusion of the circuit court of appeals
that there was no such commencement of building as would give the
mechanics' liens priority over the mortgages on the property within
the meaning of the Kansas statute.
216 F. 721 affirmed.
The facts are stated in the opinion.
Page 240 U. S. 619
MR. JUSTICE McREYNOLDS delivered the opinion of the Court.
This is a contest for priority between creditors of a bankrupt.
Appellees claim under mortgages upon certain real estate in
Wichita, alleged to have been recorded before building operations
on the property were commenced. Appellants maintain construction
began prior to recordation, and that they are secured by preferred
mechanics' liens created by the Kansas statute. Disagreeing with
the district court, but in accord with the referee's opinion, the
circuit court of appeals (216 F. 721) held that no "such work as
amounted to the commencement of the building within the meaning of
the Kansas statute" was performed prior to the time when the
mortgages were placed on record, and "that what was done was but a
mere pretense at the commencement of a building, done to defeat
bona fide prior liens." And it accordingly adjudged the
mortgage creditors entitled to priority.
The essential question presented is one of fact, and there is
sharp dispute in the testimony. Substantial difficulties are
disclosed, but, after considering the evidence, we think it
sustains the conclusions reached by the circuit court of appeals,
and the judgment entered there is accordingly affirmed.