Rose Townsend Trust v. Johnston (In re Johnston)

MEMORANDUM *

Deutsche Bank National Company (“Deutsche Bank”) appeals the district court’s affirmance of the bankruptcy court’s grant of summary judgment to Rose Townsend Trust (“Townsend”) in an adversary proceeding related to debtor Daryl Jane Johnston’s Chapter 13 bankruptcy. The bankruptcy court determined that, with respect to the priority of claims on Johnston’s residence, which she claimed as homestead property, two Washington state court judgments and two bankruptcy court judgments held by Townsend had priority over a deed of trust held by Deutsche Bank. We have jurisdiction pursuant to 28 U.S.C. § 1291 . We reverse the grant of summary judgment and re *461 mand to the bankruptcy court for further proceedings.

“We review de novo the district court’s judgment in the appeal from the bankruptcy court, and apply the same de novo standard of review the district court used to review the bankruptcy court’s summary judgment.” Suncrest Healthcare Ctr. LLC v. Omega Healthcare Investors, Inc. (In re Raintree Healthcare Corp.), 431 F.3d 685, 687 (9th Cir.2005).

First, although, the judgments held by Townsend were entered before Deutsche Bank refinanced Johnston’s mortgage, Deutsche…