Kentucky Legal Systems Corp. v. Dunn
Court of Appeals of Kentucky
205 S.W.3d 235 (2006)
Relevant factsFree
Kentucky Legal Systems Corporation (KLS) (defendant) recorded a judgment lien against all of Dunn's property in 1998; in 2000, Dunn bought a specific property subject to a purchase money mortgage held by Community Trust Bank (plaintiff). Dunn defaulted, the Bank foreclosed, and sought a declaratory judgment that its purchase money mortgage had priority over KLS's earlier-recorded judgment lien; the circuit court agreed, and KLS appealed.
IssueFree
Whether a purchase money mortgagee holds special priority over all other recorded liens and judgments except where agreed otherwise by the parties or specified by statute.