London Bank & Trust Co. v. American Fidelity Bank & Trust Co.

McDONALD, Judge.

This is an appeal from the Whitley Circuit Court dealing with the question of priority of liens and the doctrine of merger of title. The facts of this case are complicated; however, for review purposes we will endeavor to simplify them.

Originally, James Grubbs borrowed money from the London Bank & Trust Company and gave it a mortgage on certain real property used primarily as a motel. Secondly, Grubbs borrowed money on the same property and gave a mortgage to American Fidelity Bank & Trust Company. Therefore, at this point, the priority of the liens was first to London Bank,…