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The Endless Legal Battle for the Denny Hotel

A massive, years-long legal tangle over liens and mortgages stalls the completion of one of Seattle's most ambitious building projects.

The cases of Cornell University and F. P. Potvin vs. the Denny Hotel Company, which have been before the courts for years, are being heard by Referee William B. in the library room at the courthouse and promise to continue for a week or ten days. There is a small army of lawyers engaged in the cases, and a load of papers and legal evidence. The cases have grown sensitive because of being so long before the courts and because of the large number of liens against the hotel. Cornell University is seeking to secure a foreclosure of its $100,000 mortgage against the hotel company, secured in the fall of 1891. Potvin is attempting to establish his lien on the property and claims it is prior to the mortgage, as he commenced work before the making of the loan. In addition to the contract price, Potvin also claims a large sum for extras. The Denny Hotel Company was originally organized by Thomas T. Minor, Judge H. G. Struve, J. P. Hoyt, J. D. Lowman, W. E. Bailey, A. A. Denny and Judge Thomas Burke, for the purpose of endeavoring to secure what was at the time very much needed, a suitable hotel. It was the intention that the hotel be built by popular subscription from the people of the city. On July 2, 1890, the company entered into a contract with F. P. Potvin to erect the hotel building proper for $185,000. Potvin immediately commenced work and continued until March 1891. Potvin testified that the building cost over $200,000, and that if he had had $5,000 in cash he could have finished his contract with the material he had on hand.

“There is a small army of lawyers engaged in the cases, and a load of papers and legal evidence.”

— Printed in The Seattle Post-Intelligencer (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1895
Then · 1895131 years apartNow · 2026

The Denny Hotel was a landmark of Seattle's early booster era, intended to be a civic centerpiece. Its construction was plagued by the same financial volatility and lien disputes that continue to complicate large-scale development in Seattle today.

The original page

The Seattle Post-Intelligencer (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1895-06-08. Library of Congress, Chronicling America.

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About this story

From
The Seattle Post-Intelligencer (Seattle, Wash. Terr. [Wash.]) 1888-1914, JUN 8, 1895, Page 5
Text
Cleaned up from the page — spelling and layout repaired — not a word-for-word transcription. The page itself is above, for exact wording.
Rights
Public domain
Place
47.60323, -122.33028 · placed automatically
The paper in the Library of Congress catalog ↗