First National Bank in Graham and Guy Meacham, Petitioners v. Emmett Sledge, B.j. Brown, Bob Brown, Ed C. Davis And…

Summary

The Texas Supreme Court affirmed the lower courts' judgments regarding the subcontractors' mechanic's and materialman's liens, but reversed the award of attorney's fees. It held that the subcontractors failed to perfect liens under the trapping statute (Art. 5463) because they omitted the required statutory warning, but they did perfect liens under the retainage statute (Art. 5469) by providing timely notice. The court also determined that the subcontractors' liens have priority over the bank's lien to the extent of the retainage amount, and that no attorney's fees were owed because no contractual relationship existed with the owner.