Sourcecorp Inc v. D norcutt/S Norcutt

Summary

The Arizona Supreme Court held that purchasers who paid off a preexisting mortgage to acquire and protect their interest in property may be equitably subrogated to that mortgage's priority over a judgment lien. The court adopted the Restatement approach, rejecting requirements that the payor be evaluated under a rigid "volunteer" label or that an express or implied agreement to subrogate exist. The court limited the purchasers' relief to priority in sale proceeds up to the amount paid to satisfy the mortgage, affirmed the court of appeals, and remanded for entry of summary judgment in favor of the purchasers.