Libby v. Brooks

DANA, Justice.

Janet Brooks appeals from a judgment ‘of the Superior Court (Cumberland County, Brodriek, J.) granting Rena Libby a summary judgment on her foreclosure action against Brooks. Brooks argues that her purchase money mortgage has priority over a mortgage created by the equitable doctrine of estoppel by after-acquired property. Because we agree, we vacate the judgment.

In January 1990 attorney Thomas F. Malone, Jr., borrowed $60,000 from Rena Libby and her late husband ostensibly to finance the purchase of his office condominium. He secured the promissory note evidencing his debt with…