Dykes v. Clem Lumber Co

In Dykes v. Clem Lumber Co., 62 Ariz. 181, 182-83, 156 P.2d 406, 406-07 (1945), a supplier held a materialmen's lien against property on which a contractor was working. 62 Ariz. at 182, 156 P.2d at 406. Thereafter, the supplier recorded a release, "acknowledging that it had been paid, and satisfied in full 'all lien on the real estate.'" Id. at 182-83, 156 P.2d at 406. The Arizona Supreme Court held that despite the supplier's acknowledgement that it had been paid, the release of the lien did not act to discharge the contractor from the underlying debt obligation or act as a waiver that prevented the supplier from pursuing a breach of contract claim against the contractor. Id. at 183, 156 P.2d at 406-07.