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ILLINOIS OFFICIAL REPORTS
Appellate Court

United Community Bank v. Prairie State Bank & Trust, 2012 IL App (4th) 110973

Appellate Court Caption

UNITED COMMUNITY BANK, a Banking Corporation; and JAMES G. McDONOUGH, Plaintiffs-Appellants, v. PRAIRIE STATE BANK & TRUST, an Illinois Banking Corporation, Defendant-Appellee, and SANTARELLI AND SONS, INC., Defendant.

District & No.

Fourth District Docket No. 4-11-0973 June 19, 2012 July 11, 2012 Where defendant builder's construction mortgage for certain property was recorded before defendant bank recorded the money judgment it obtained against the builder, and then the builder entered into a purchase contract for the property that was not recorded, equitable conversion arising from the unrecorded purchase contract did not operate to completely negate defendant bank's judgment lien; however, plaintiff bank, as mortgagee for the purchaser, had priority over defendant bank pursuant to the doctrine of equitable subrogation to the extent of the loan proceeds advanced to discharge the construction mortgage. Appeal from the Circuit Court of Sangamon County, No. 08-MR-563; the Hon. Tim P. Olson, Judge, presiding.

Argued Filed Held
(Note: This syllabus constitutes no part of the opinion of the court but has been prepared by the Reporter of Decisions for the convenience of the reader.)

Decision Under Review

Judgment

Affirmed in part and reversed in part; cause remanded.

Counsel on Appeal

E.C. Eberspacher and Dustin L. Probst, both of Dove & Dove, of Shelbyville, and William L. Sauerwein (argued) and Brandon S. Rothkopf, both of Sauerwein Simon P.C., of Springfield, for appellants. Mariann Pogge (argued), of Springfield, for appellee Prairie State Bank & Trust.

Panel

JUSTICE APPLETON delivered the judgment of the court, with opinion. Justices Steigmann and Cook concurred in the judgment and opinion.

OPINION

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Illinois Law