William McIntyre v. Bnc Mortgage, LLC

MEMORANDUM

Appellants William McIntyre, Gail Johnson-Melntyre, and Tshombe Sampson appeal the district court’s decision affirming the bankruptcy court’s grant of an equitable lien against McIntyre and JohnsonMclntyre’s real property and the bankruptcy court’s grant of priority to that equitable lien over Sampson’s unrecorded lien for attorneys’ fees. The bankruptcy court granted an equitable lien in favor of assignee BNC Mortgages (predecessor in interest to appellee American Home Mortgages, Inc., or “AHMSI”) and ordered the lien recorded, because BNC had erroneously, but in good faith, repaid the note secured by deed of trust on McIntyre and Johnson-Melntyre’s real property. Because the parties are familiar with the facts of the case, we repeat them here only as necessary to explain our decision. We affirm.

First, AHMSI is entitled to an equitable lien. Under California law, a party is entitled to an equitable lien “when a lender advances money which benefits the land of another in mistaken reliance upon an imperfect mortgage or lien upon that land.” Jones v. Sacramento Sav. & Loan Ass’n, 248 Cal.App.2d 522, 530 , 56 Cal.Rptr. 741 (1967). Here, BNC benefited McIntyre and…