New Phase Investments v. Jarvis and DAFCO

J. JONES, Justice.

This appeal arises from a dispute between two competing creditors, DAFCO, LLC, and New Phase Investments, LLC. DAFCO appeals from the district court’s determination on summary judgment that DAFCO’s deed of trust — although first recorded — was void under I.C. § 32-912 because it encumbered community real property but was not signed by both spouses. Because I.C. § 32-912 was enacted for the protection of the community rather than third-party creditors, we find that New Phase may not invoke that statute to void DAFCO’s competing encumbrance. We reverse.

I

FACTUAL AND PROCEDURAL…