Bob DeGeorge Assocs., Inc. v. Hawthorn Bank
Annotate this CaseHawthorn Bank appealed the trial court's entry of summary judgment in favor of Plaintiffs on Hawthorn Bank's claim that its purchase-money deed of trust being recorded after the mechanics' liens attached to the property. Hawthorn Bank asserted that purchase-money deeds of trust are always superior in priority to mechanics' liens under Missouri law and that the recording statutes, Mo. Rev. Stat. 442.380 and 442.400, do not govern the relative priority of a purchase-money deed of trust over a mechanic's lien. The Supreme Court affirmed the judgment of the trial court, holding that because sections 442.380 and 442.400 provided that Hawthorn Bank's purchase-money deed of trust was not valid until recorded and because the mechanics' liens attached before it was recorded, the purchase-money deed of trust was a subsequent encumbrance that was inferior in priority to the mechanics' liens.
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