Nerox Power Systems, Inc. v. M-B Contracting Co.

OPINION

FABE, Chief Justice.

I. INTRODUCTION

In April 1997 Nerox Power Systems, Inc. recorded two deeds of trust encumbering mining rights to the Jonesville coal mine in Sutton, for the purpose of securing repayment of debts to certain alleged creditors. At issue in this appeal is the superior court's decision to give other creditors lien priority over the deeds of trust under the doctrine of equitable subordination. A second issue concerning the legal relationship between Nerox Power, its parent company, and the major shareholder in the parent company is which of these should assume liability…