MidFirst Bank v. Brown

Summary

The Court held that the Court of Appeals applied the wrong standard in rejecting equitable subrogation based on the lender's alleged lack of excusable ignorance of an intervening lien. The applicable inquiry asks whether the lender was culpably negligent and requires consideration of the equitable-subrogation exceptions, including potential prejudice to the junior lienholder. The Court reversed and remanded for the trial court to reassess the matter under that standard.