Merchants Bank v. Thibodeau

The plaintiff, Merchants Bank, filed an action in Chittenden Superior Court to foreclose mortgages held by it on certain premises owned by defendants Thomas and Irene Thibodeau. The defendants Guy and Eleanor Stone were named in the complaint as parties having an interest in the subject premises. The bank alleged that the Stones’ interest is subordinate to its mortgage by virtue of a subordination agreement between the parties. The Stones answered the complaint, asserted affirmative defenses challenging the seniority of the bank’s mortgage, cross-claimed for foreclosure against the…