Suburban Nursing & Mobile Homes, Inc. v. Shaw

This is an appeal from a summary final judgment and a judgment on the pleadings entered in favor of the defendants Elliot and Felecia Shaw [hereinafter Shaws] in an action sounding in equitable subrogation brought below by the plaintiff Suburban Nursing and Mobile Homes, Inc. [hereinafter Suburban], The issue presented is whether a party, as here, who (a) pledges collateral to secure a note, and (b) loses the collateral to the creditor to pay off the underlying debt after the maker of the note defaults, is equitably subrogated to the rights of the creditor so that he may recoup his loss…