Critical thinking – business law

26.1)Mechanic’s Lien. Ironwood Exploration, Inc. (Ironwood) owned a lease on oil and gas property located in Duchesne County, Utah. Ironwood contracted to have Lantz Drilling and Exploration Company, Inc. (Lantz), drill an oil well on the property. Therafter, Lantz rented equipment from Graco Fishing and Rental Tools, Inc. (Graco), for use in drilling the well. Graco billed Lantz for these rentals, but Lantz did not pay. Graco filed a notice of mechanic’s lien on the well in the amount of $19,766. Ironwood, which had paid Lantz, refused to pay Graco. Graco sued to forclose on its mechanic’s lien. Who wins? Graco Fising and Rental Tools, Inc. v. Ironwood Exploration, Inc., P.2d 1074, 98 Utah Adv. Rep. 28. Web 1998 Utal Lexis 125 (Supreme Court of Utah)

26.2)Foreclosure Atlantic Ocean Kampgrounds, Inc. (Atlantic) borrowed $60,000 from Camden National Bank (Camden National) and executed a note and mortgage on property located in Camden, Maine, securing that amount. Maine permits strict foreclosure. Atlantic defaulted on the loan, and Camden commenced strict foreclosure proceedings pursuant to state law. After the one-year period of redemption, Camden National sold the property to a third party in an amount in excess of the mortgage and costs of the foreclosure proceeding. Atlantic sued to recover the surplus from Camden National. Who wins? Atlantic Ocean Kampgrounds, Inc. v. Camden National Bank, 473 A.2d 884, Web 1984 Me. Lexis 666 (Supreme Judicial Court of Maine)

26.3)Redemption Elmer and Arletta Hans, husband and wife, owned a parcel of real property in Illinois. They borrowed $100,000 from First Illinois National Bank (First Illinois) and executed a note and mortgage to First Illinois, making the real estate security for the loan. The security agreement authorized First Illinois to take possession of the property upon the occurrence of a default and required the Hanses to execute a quitclaim deed in favor of First Illinois. The state of Illinois recognizes the doctrine of redemption. When the Hanses defaulted on the loan, First Illinois filed a lawsuit, seeking an order requiring the Hanses to immediately execute a quitclaim deed to the property. Must the Hanses execute the quitclaim deed before the foreclosure sale?First Illinois National Bank v. Hans, 143 Ill. App.3d 1033, 493 N.E.2d 1171, Web 1986 Ill.App. Lexis 2287 (Appellate Court of Illinois)


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