At 10:00 the COA will hear the Pennington Group LLC, Joe Pennington, Helen Pennington, and Penninbunkport Investments, LLC v Priority One Bank
The Pennington Group executed a number of deeds of trust in favor of PriorityOne securing indebtedness to first Ridgeview Homes, then Depco Holdings and then Helen Pennington starting in 2008. In 2011, Helen Pennington started foreclosure proceedings and completed foreclosure on one deed of trust. The purchaser at the foreclosure sale was Pennibunkport Investments, a business entity wholly controlled by Helen Pennington. When PriorityOne learned that Helen Pennington was claiming that PriorityOne’s held a subordinate lien position, PriorityOne filed suit.
After a trial, the chancellor held that PriorityOne maintained a first lien position against the property and that all of its Deeds of Trust were in full force and effect. It did not set aside Helen Pennington’s foreclosure sale to Pennibunkport Investments, LLC. Instead, it found that Helen Pennington’s two Deeds of Trust, as well as the foreclosure sale conducted by Helen Pennington, were all subject to or subordinate to the first priority lien position of PriorityOne, by virtue of all four of PriorityOne’s deeds of trust.
The Pennington Defendants appealed.
Watch the argument here