Diversified Mortgage Investors, Petitioner v. Lloyd D. Blaylock General Contractor, Inc., Respondents

Summary

The Texas Supreme Court held that the deed of trust lien held by DMI was senior to Blaylock's mechanic's lien on the Fort Worth property, extinguishing the mechanic's lien, and that on the Irving property the deed of trust lien was senior only to the extent of a prior vendor's lien, allowing Blaylock to recover the excess proceeds of the foreclosure sale. The court clarified the statutory standards for determining the inception of mechanic's and materialman's liens.