First National Bank of Kerrville v. O'Dell

OPINION

GAMMAGE, Justice.

This summary judgment case involves a real estate lien priority dispute, and presents the issue of proper application of the doctrine of equitable subrogation. The First National Bank of Kerrville (“Bank”), as the fourth lienholder, purported to buy the first and second lienholder notes and renew, extend and rearrange such notes to exclude the notice required to the third lienholder, Dr. David Melton O’Dell and his wife Carolyn (collectively “O’Dell”), who were the only parties involved personally liable under the notes. When the “makers” defaulted, the Bank foreclosed…