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MEYER V. HORNBY, 101 U. S. 728 (1879)

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Meyer v. Hornby, 101 U.S. 728 (1879)

Meyer v. Hornby

101 U.S. 728


1. The ruling in Brooks v. Railway Company, supra, p. 101 U. S. 443, that work done by a contractor upon a part of a railroad then in process of construction entitles his lien, under the laws of Iowa, to precedence over that of a prior mortgage upon the entire road, reaffirmed.

2. The contractor was a stockholder in a construction company, which, when it placed on the market the bonds secured by the mortgage, gave a guaranty that the local subscriptions and grants would be sufficient to prepare the road for the reception of the rails, and also undertook to make good any deficiency. Held that he was not thereby estopped from setting up his lien as against the mortgagee.

3. If the holders of the bonds sustained any loss by reason of the guaranty, the company which gave it is liable in damages.

The facts are sufficiently stated in the opinion of the Court.

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