Wells Fargo Bank, Minnesota, N.A. v. Commonwealth

Opinion of the Court by

Special Justice LAWRENCE L. JONES II.

This consolidated appeal presents two key questions for the Court’s determination: 1) Are general tax liens created pursuant to the former KRS 134.420(2) (now KRS 131.515) superior to later filed mortgage liens? 2) Does the doctrine of equitable subrogation act to displace the priority of an earlier recorded KRS 134.420(2) general tax lien? The Court resolves that the Commonwealth of Kentucky’s prior-recorded KRS 134.420(2) tax liens enjoy priority pursuant to the long established first-to-file doctrine. Moreover, the Court declines…