Bankruptcy invalidating liens
Although the facts contain some discrepancies in when certain contracts and conveyances were made, those do not appear to be relevant to the equitable subrogation application by the court. that appellee-bank regarded itself as stepping into the shoes of Eyre. Around the same time, Mesa Steel purchased an air drill and hoist, also by conditional sales contract from Jaquays.First there was a loan of ,000 to finance the project for which Eyre received a first position mortgage. However, no formal assignment of the prior mortgage to appellee was executed, but it is implicit that the parties intended the appellee to have the security attached to the prior mortgage. Jaquays assigned that to First Security Bank with a guaranty in identical form.Conway sued to have the lots sold to repay the amounts paid by Fox to redeem from the Hughes and Skousen sales. It involves three elements: (1) A valuable right; (2) a person who owns the right; and (3) a person who seeks to be substituted in that ownership.Conway claimed to be subrogated to the rights of Hughes and Skousen. It is a creature of equity, and was adopted from the Roman and not from the common law. This remedy has been applied much more extensively in American than in English jurisprudence, and the modern tendency is to extend its use rather than to restrict it. There must exist a claim or obligation against the debtor; an original right to that claim on the part of him in whose place substitution is sought, and some right belonging to him who seeks the substitution which will be protected thereby. Upon the general principles of equity and the rights which he acquired by the purchase are clearly and explicitly set forth in subdivisions (f) and (i), paragraph 1973, supra.Hughes obtained certificates of sale (subject to rights of redemption) upon the default of the first assessment.Fox similarly purchased at the sale upon the default of the second assessment and then paid the redemption price to Hughes.
This time the judgment was affirmed, Conway’s deeds having been acquired in compliance with the statutory procedure. Unbeknownst to Smith, that mortgage was never recorded.They could have foreclosed the mortgage and subjected the chattels to payment of the debt. The Apache Junction Chamber of Commerce received a parcel of land and decided to build a baseball park on it. In the instant case, however, the rights of appellant are unaffected by the substitution of appellee for Eyre. Jaquays made a conditional sale of a compressor to Mesa Steel and assigned the contract to VNB.The security for the debt was, therefore, not lost to appellants unless appellees are mortgagees in good faith., 2 Ariz. It formed a corporation to be formed to accomplish that. Appellant remains with a lien prior to all claims save that for a mortgage given before appellant commenced any work on the project., 101 Ariz. This is another case cited in support of equitable subrogation, although it merely refers to subrogation. Upon Mesa Steel requesting that assignment instead be to First Security Bank, Jaquays agreed, but instead prepared a duplicate contract and assigned it accompanied by a guaranty of performance by Jaquays.Then a contract was entered into with Peterman-Donnelly for construction and some work performed. The evidence supporting the motions revealed that at the time the property in question was conveyed to the Association from the Chamber, it was understood that a part of the loan forwarded by the appellee to the Association was to be used to satisfy the debt to Eyre. Where such an understanding, express or implied, exists, the law generally allows a subsequent mortgagee to be subrogated to the rights of a prior mortgagee where the subsequent mortgagee has advanced money to the debtor to satisfy the prior mortgage, and where the subsequent mortgagee is not a mere volunteer. Subsequently, Mesa Steel became bankrupt and the bank sued Jaquays upon the guarantees.Following that ,000 was borrowed from First National Bank. The trial court granted summary judgment for the bank.
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According to the court: It is a universally recognized rule that a mortgagor, who after having conveyed his interest is compelled to pay the principal debt, is equitably subrogated to the mortgagee’s interests and succeeds to the mortgagee’s rights.