Connecticut General Life Insurance v. Dredge

SETH, Circuit Judge.

This appeal arose from a foreclosure action brought by Connecticut General Life Insurance Company in the Bankruptcy Court for the District of Utah. Connecticut General claimed a first mortgage on a farm and appellee Wells Fargo Bank claimed a second mortgage. The bankruptcy court reordered the priorities under the doctrine of equitable subrogation and gave first priority to the mortgage of the original owners, the Dredges, but permitted Connecticut General to foreclose subject to the Dredges’ lien. On appeal the District Court for the District of Utah reversed and changed…