First Funding Corp. v. Birge

In this creditors’ rights suit seeking to establish priorities of liens on real estate, the main issue is whether, considering the language of the subordination clause in this case, the lien of a purchase money deed of trust on one parcel of land properly may be subordinated to the lien of a deed of trust securing a construction loan on the subject parcel and another parcel.

In February of 1974, plaintiff Warren R. Birge, Jr., executed two separate contracts to sell to defendant W. H. Quatmann Associates, Incorporated, two unimproved parcels of land designated as Lot 3 and Lot 48 in Parkview…