Illinois Appellate Court Holds that Insurer May Subrogate to the Rights of an Additional Insured Based on a Contractual Right to Subrogation and that Equitable Subrogation Principles Do Not Apply - In a recently decided...more
On June 1, 2023, the North Carolina Court of Appeals published two opinions involving issues of: (i) lenders’ rights to equitable subrogation, and (ii) substantial performance as a means to support a breach of contract claim...more
On May 12, 2023, the Supreme Court of Texas held, in a unanimous decision, that a claim to foreclose on a subrogated real property lien accrues when the refinance loan is accelerated, not when the prior loan (the payoff of...more
A recent decision from the North Carolina Court of Appeals illustrates the wrong way to refinance a loan. In Midfirst Bank v. Brown, a refinancing lender cancelled a deed of trust that should have been assigned to it and...more
Real Property Update - UCC / Security Interests: Eleventh Circuit certified to the Florida Supreme Court the following questions: (1) Is the "search of the records of the filing office under the debtor's correct name,...more
Real Property Update - Equitable Subrogation: Record contained evidence demonstrating that Tank Tech had repaired tanks alleged damaged by improper testing and that it had paid or reimbursed Circle K for expenses incurred...more
The determination of whether a tenant is also a coinsured under the landlord’s policy ultimately comes down to the language in the lease and relationship between the parties. In the absence of specific language or a unique...more
On January 29, 2021, the Texas Supreme Court confirmed that the voiding of a lender’s lien due to the expiration of the statute of limitations does not preclude the lender from foreclosing on a pre-existing lien under the...more
Real Property Update - Foreclosure / Standing: Servicer had standing to foreclose where asset management agreement authorized predecessor-in-interest to delegate service of loan and ability to bring foreclosure action and...more
Real Property Update - Covenant Running With Land: Rejecting association’s argument on appeal that trial court erred in finding that recorded agreement was not a restrictive covenant running with the land but a personal...more
Real Property Update - Mortgage / Parcel Description: Because recorded mortgage sufficiently and unambiguously described subject property, purchasers had constructive notice that property was encumbered by the mortgage;...more
In Pulte Home Corp. v. CBR Electric, Inc. (No. E068353, filed 6/10/20), a California appeals court reversed the denial of an equitable subrogation claim for reimbursement of defense costs from contractually obligated...more
On April 24, 2020, the Texas Supreme Court upheld a lender’s right to equitable subrogation for non-compliant home equity loans, ruling that lenders who fail to cure within the statutorily mandated 60-day period may recoup...more
Every policyholder will likely face a scenario where its primary insurer refuses a settlement offer within limits. The primary insurer is potentially liable for that excess verdict if it acted in bad faith by refusing to...more
Real Property Update - Foreclosure / Condo Assessments: under section 718.116(1)(a), Florida Statutes, present condo owner is jointly and severally liable with the previous owner for unpaid assessments and related expenses...more
On July 2, 2019, the United States Bankruptcy Court for the Southern District of Mississippi sent a clear message to secured lenders that their security interests on a contractor's account receivables, even if perfected, will...more
Real Property Update - Sanctions / Dismissal: trial court abused discretion in dismissing bank’s foreclosure action; record established bank complied with discovery orders on which the motion for dismissal/sanctions was...more
Real Property Update - Foreclosure / Standing: bank cannot rely solely on its acquisition of prior lenderto prove standing where note was specially indorsed to prior lender - Certo v. The Bank of New York Mellon, No....more
Real Property Update - Foreclosure / Attorneys' Fees: borrower not entitled to attorneys' fees for prevailing on lender's claim for reformation of mortgage, where lender prevailed on claim of foreclosure without...more
Real Property Update - Foreclosure/Attorneys' Fees: where borrower prevailed on argument that dismissal of foreclosure action was required as bank was not entitled to enforce a mortgage contract containing a fee...more
REAL PROPERTY UPDATE - Receiver/Barton Doctrine: individual could not bring negligence action against discharged receiver of commercial property until individual first obtained leave to do so from the court that appointed...more
In its decision yesterday in Wells Fargo Bank v. Comeau, the Massachusetts Appeals Court rejected the plaintiff mortgagee’s attempt to use the doctrine of equitable subrogation in a novel way: to impose on a surviving wife...more
The doctrine of conventional subrogation in real estate is familiar to most lenders: a new lender that pays the mortgage of a prior one steps into the shoes of – or is subrogated to – the prior lender’s security interest in...more
REAL PROPERTY UPDATE- Takings/Declaratory Relief: plaintiff’s request for a declaration that its further pursuit of a zoning application was futile was not a proper claim for declaratory relief – GolfRock, LLC v. Lee...more
REAL PROPERTY UPDATE - Foreclosure/Condition Precedent: servicer did not meet its burden of proving it satisfied condition precedent of giving notice of acceleration by failing to provide evidence that notice letter had...more