THE BANK OF NEW YORK MELLON f/k/a THE BANK OF NEW YORK, et al. v. WILLIAM BARRY GOODMAN, et al. - Articles

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Posted by: Tanja Trezise on Apr 17, 2014

Court: TN Court of Appeals

Attorneys 1:

Glenn B. Rose and John David McDowell, Nashville, Tennessee, for the appellant, The Bank of New York Mellon f/k/a The Bank of New York.

Attorneys 2:

James Douglas Kay, John B. Enkema, and Benjamin Ealey Goldammer, Nashville, Tennessee, for the appellant, Dana Baugh Goodman.

David M. Smythe, Nashville, Tennessee, for the appellee, Pinnacle Bank, f/k/a Pinnacle National Bank.

Judge(s): CANTRELL

Bank made a loan to an individual who owned real property and obtained a deed of trust on the property securing the loan. Bank recorded the deed of trust in the wrong county. A few years later Second Bank obtained two judgment liens and properly registered them in the correct county. Bank later realized its error and registered its deed of trust in the correct county but was by that time in the junior creditor position. Bank filed a complaint seeking equitable subrogation in an effort to obtain the priority creditor position and get placed ahead of Second Bank, which had no security interest in the property at issue, but which had filed its liens first. The trial court denied Bank this relief after balancing the equities of the parties. We affirm.