Neu v. Gibson

SHEPARD, Chief Justice.

Brett Gibson sold his business to John Nowak. Nowak financed his purchase in part with a note secured by a second mortgage on Nowak's residence. Nowak subsequently sold his residence to Thomas and Elizabeth Neu, who did not know of Gibson's mortgage. When Nowak defaulted, Gibson foreclosed. During an earlier appeal, the Court of Appeals determined that the Neus and their lender were entitled to priority ahead of Gibson, the same position held by Nowak's first mortgagee.

Now, the Neus claim this entitles them to interest, attorney fees, and costs. They also assert that…