Everett Credit Union v. Allied Ambulance Services, Inc.

Everett Credit Union (Everett), the holder of a mortgage on real estate owned by the debtor, Allied Ambulance Services, Inc. (Allied), conducted a foreclosure sale. This is an interpleader action brought by Everett to resolve competing claims to the surplus proceeds. Everett and the Commonwealth of Massachusetts are two of five claimants to these proceeds, and in their appeals they challenge the order of priority of the claims set forth in the judgment. The order of priority is critical, as the surplus proceeds ($38,394.70) are insufficient to pay all the claims. A third claimant,…