Secured Equity Financial, LLC v. Washington Mutual Bank, F. A.

Adams, Judge.

The trial court granted summary judgment in favor of Washington Mutual Bank, F. A. by applying the doctrine of equitable subrogation to a dispute between Washington Mutual and another lender, Secured Equity Financial, LLC and a related party, who now appeal. The trial court concluded the undisputed facts justify the conclusion that, at the time it acquired a security interest in the property, Secured Equity was on constructive notice of a possible claim of equitable subrogation and that, therefore, its security interest was extinguished. For the reasons that follow, we reverse.

Sum…