2DP Blanding, LLC v. Palmer

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An appellant who takes no action to preserve his interests in property at issue on appeal has no recourse against a lawful third-party purchaser.Appellant agreed to sell two parcels of commercial real estate to JDJ Holdings Inc. JDJ obtained two loans to finance the purchase - one from First National Bank and one from Appellant - both of which were secured by trust deeds. JDJ later defaulted on the loans. Appellant and First National both claimed that their deed was was entitled to senior position. The district court granted summary judgment to First National. Appellant appealed but did not formally seek or obtain a stay of the order and did not file a lis pendens on the property. First National subsequently purchased the parcel at issue under its reinstated trust deed. The parcel was later conveyed to 2DP Blanding, LLC. The court of appeals overturned the district court’s order. 2DP then filed suit seeking to quiet title to the property and to enjoin Appellant’s pending foreclosure sale under his original trust deed. The district court granted summary judgment for 2DP. The Supreme Court affirmed, holding that 2DP was entitled to title of the property free and clear of any interest Appellant may have previously had in the property. View "2DP Blanding, LLC v. Palmer" on Justia Law