THIS OPINION HAS NO PRECEDENTIAL VALUE. IT SHOULD 

NOT BE CITED OR RELIED ON AS PRECEDENT IN ANY 

PROCEEDING EXCEPT AS PROVIDED BY RULE 268(d)(2), SCACR. 

THE STATE OF SOUTH CAROLINA 

In The Supreme Court 

DeShields Grading, Inc., Respondent, 

v. 

Ford Trust; Maurice Andre 

Smith and Perry S. Luthi, Sr., 

as co-trustees of Ford Trust 

dated April 8, 2010; Maurice 

Andre Smith, Individually; 

Peggy D. Taylor, Individually; 

Luthi Mortgage Co., Inc, d/b/a 

First Palmetto Trust; 

Investments One, LLC; 

Reserve Woodfin HOA and 

Elite Concrete Construction, 

LLC, Defendants, 

of whom Luthi Mortgage Co., 

Inc., d/b/a First Palmetto Trust 

is Appellant, 

and Elite Concrete 

Construction, LLC, is Respondent. 

__________ 
__________ 

__________ 

__________ 

__________ 

Appeal From Spartanburg County 

Gordon G. Cooper, Master-in-Equity 

Memorandum Opinion No. 2012-MO-020 

Heard April 5, 2012 – Filed June 6, 2012 

AFFIRMED 

David G. Ingalls and Paul A. McKee, III, both of 

Spartanburg, for Appellant. 

John T. Crawford, Jr. and Townes B. Johnson III, 

both of Kenison, Dudley & Crawford, of Greenville; 

Nathan A. Earle, of Travelers Rest, for Respondents. 

PER CURIAM: Luthi Mortgage Co., d/b/a First Palmetto Trust (First 

Palmetto) appeals from the master-in-equity's order granting priority to Elite 

Concrete Construction, LLC's and DeShields Grading, Inc.'s judgments over 

First Palmetto's purchase money mortgage. First Palmetto argues its 

purchase money mortgage has priority or should be equitably subrogated to a 

previous purchase money mortgage held by a third party. In addition, First 

Palmetto argues its principal had no notice of any fraudulent subordination of 

judgments. We affirm the master's decision pursuant to Rule 220(b)(1), 

SCACR, and the following authorities: 

1. Priority: S.C. Fed. Sav. Bank v. San-A-Bel Corp., 307 S.C. 76, 80, 

413 S.E.2d 852, 855 (1992) (discussing the rationale for purchase 

money mortgages); SunTrust Bank v. Bryant, 392 S.C. 264, 268, 708 

S.E.2d 821, 823 (Ct. App. 2011) ("[P]urchase money mortgages are 

accorded priority over all other liens arising through the 

mortgagor." (emphasis added)). 
2. Equitable Subrogation: Dedes v. Strickland, 307 S.C. 155, 158, 414 

S.E.2d 134, 136 (1992) ("A party may be equitably subrogated to 

the rights of an earlier creditor if: (1) the party claiming subrogation 

has paid the debt owed to the earlier creditor; (2) the party was not a 

volunteer but had a direct interest in the discharge of the debt or 

lien; (3) the party was secondarily liable for the debt or for the 

discharge of the lien; and (4) no injustice will be done to the other 

party by the allowance of the equity."); Dodge City of Spartanburg, 

Inc. v. Jones, 317 S.C. 491, 494, 454 S.E.2d 918, 920 (Ct. App. 

1995) ("The party claiming subrogation must not have actual 

knowledge of any intervening lien creditors."). 

3. Notice: First Sav. Bank v. McLean, 314 S.C. 361, 363, 444 S.E.2d 

513, 514 (1994) (noting an issue not argued in the brief is deemed 

abandoned and precludes consideration on appeal). 

AFFIRMED. 

PLEICONES, ACTING CHIEF JUSTICE, BEATTY, KITTREDGE, 

HEARN, JJ., and Acting Justice James E. Moore, concur.