Trustmark National Bank, et al. v. Deutsche Bank National Trust Company, et al.

This case concerns the priority of lienholders' respective interests in real property. The plaintiffs/appellees, Trustmark National Bank and FirstBank, filed this joint action as amended for declaratory judgment against the defendants/appellants, Long Beach Mortgage Company, Sonya R. Thomas, and Deutsche Bank National Trust Company, and for enforcement of their liens through judicial sale of the property. The plaintiffs' amended complaint asserted that Trustmark and FirstBank held judgment liens against the property that were valid, enforceable, and superior to the defendants' interests. The defendants responded in pertinent part that they were entitled to priority under the doctrine of equitable subrogation, even if the plaintiffs held prior-recorded judgment liens against the property. The trial court granted summary judgment in favor of the plaintiffs, finding that the undisputed facts demonstrated that the plaintiffs' liens were enforceable and superior to the defendants' later-recorded deeds of trust and that the defendants were not entitled to equitable subrogation. The defendants appealed, challenging only whether the trial court erred when it granted summary judgment on the question of equitable subrogation. Because the plaintiffs failed to negate an essential element of equitable subrogation or show that the defendants cannot establish an essential element of equitable subrogation at trial, we reverse the grant of summary judgment in part and remand.