G.E. Capital Mortgage Services, Inc. v. Levenson

RODOWSKY, Judge.

This case involves the operation and effect of equitable subrogation on the priority of liens against realty. Subrogation is

“the substitution of one person to the position of another, an obligee, whose claim he has satisfied. ... The basic principles underlying subrogation are the same as those in constructive trusts, prevention of merger, and equitable liens, ie., restitution to prevent forfeiture and unjust enrichment.”

G.E. Osborne, Handbook on the Law of Mortgages § 277, at 561 (2d ed. 1970) (Osborne). Although the doctrine of equitable subrogation may be applied in many…