Chergosky v. Crosstown Bell, Inc.

George Chergosky (plaintiff) held an unrecorded contract for deed giving him an equitable interest in property leased to Northwestern Bell, with Crosstown Bell's owner's associate Robert Griffith (codefendant) aware of that contract from early on. After Crosstown secured a loan from Summit State Bank using a second mortgage — with Summit qualifying as a bona fide purchaser unaware of Chergosky's contract — Griffith later accepted a majority ownership interest in the property from Crosstown, despite knowing about Chergosky's contract, and still later bought and recorded Summit's mortgage. When litigation ultimately awarded the property to Northwestern, Chergosky sued to establish that his claim had priority over Griffith's; the appellate court ruled for Griffith based on the bona fide purchaser filter rule, and Chergosky appealed.