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O Owns Blackacre, a Lovely Home in Phoenix, Which Is

Question 100

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O owns Blackacre, a lovely home in Phoenix, which is worth $100,000. Blackacre is mortgaged to M for $80,000. The mortgage provides that to secure the $80,000 debt, O mortgages "all the following described real estate (description omitted) including all fixtures, improvement and appurtenances thereto, including those now existing or hereafter added to the property." The mortgage is duly recorded. Thereafter O purchases some lovely decorative mirror squares from Mike's Mirrors on credit ($800). O then hires Harry to attach the mirrors (with a rather strong glue) to the east wall of his living room. Harry charges O $150 for his labors. Mike properly filed a financing statement on the mirrors - before Harry began installation. Harry files a mechanic's lien for the labor he performed when he was finished. (Filed after Mike; Mike filed after M). O pays nothing to Mike and Harry. Mike wants his mirrors and Harry wants to be paid. M objects saying his mortgage is superior to their rights. What results?

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