Opinion ID: 1455662
Heading Depth: 2
Heading Rank: 3

Heading: The equitable lien against the Grant County property.

Text: The trial court granted an equitable lien against the Grant County property to secure the judgment rendered against Investor. The order also stated that such lien is superior to any claim of lien of Investor Properties, Inc. and all persons claiming by, through, and under Investor Properties, Inc., either as purchaser or lien-holder and such persons are hereby barred and foreclosed from any right, title, or interest of any claim or demand of whatsoever nature. This was clearly improper in view of the previous orders issued by the trial court which released both the Luna County and Grant County property. The trial court originally imposed a mortgage upon the Grant County property pursuant to a stipulation by the parties that the land would be pledged as security for a bond to release the Luna County property. This agreement was entered into before the court on May 1, 1972, and the trial court at that time ordered the Luna County land conveyed to Investor without further liens or rights as to the parties to this suit as against the ultimate purchasers thereof. On May 18, 1973, the court issued an order releasing the Grant County property, and the clerk of the court released the mortgage that same day. In our first encounter with this case we held that the trial court should have ordered an accounting and that it had jurisdiction to impose an equitable lien for any additional amounts owing. However, it was error for the trial court to impose an equitable lien on the Grant County land after the entry of the order of May 18, 1973 releasing the mortgage on the property. In Keel v. Vinyard, supra, it was held that a party who makes payments to protect his interest in land which is later redeemed is entitled to recover such payments through an equitable lien on the redeemed property. The Grant County land was not the subject of redemption, and the court lacked jurisdiction to impress an equitable lien on the property after the mortgage was released. The record also shows that innocent third parties have acquired interests in both the Luna and Grant County land. Since no lis pendens notice of supersedeas bond was posted following the disposition by the trial court, the subsequent purchasers, mortgagees and lienholders are bona fide purchasers for value without notice of any defect and therefore, equity will not operate to divest or impair their title or interest. See generally Sundie v. Harren, 253 So.2d 857 (Fla. 1971); Ure v. Ure, 223 Ill. 454, 79 N.E. 153 (1906); Rose v. Cox, 297 Ky. 458, 179 S.W.2d 871 (1944). Consequently, the appropriate remedy in this instance is simply a money judgment against Investor for the value of the mortgage payment made by Leonard during the redemption period and interest thereon.