First Fidelity Thrift & Loan Ass'n v. ALLIANCE BK.

Opinion

ZEBROWSKI, J.

—This case concerns a question of priority between two deeds of trust held by different lenders. Both deeds of trust encumber the same parcel of commercial real property. The deed of trust that was first in time was recorded, but was later mistakenly reconveyed. The deed of trust that was second in time was also recorded, but not until after the first had been reconveyed. The deed of trust that was second in time thus became first of record. The party that recorded the second deed of trust had knowledge that the first deed of trust had been recorded and also that it had…