SunTrust Financial contends one to Wachovia is going to be estopped out-of providing inconsistent ranking in the same proceeding
The fresh new doctrine regarding fair subrogation brings that, “[w]here a lender has actually state-of-the-art currency for the purpose of discharging an earlier encumbrance for the reliance on acquiring coverage equal to the fresh new discharged lien, with his cash is very much accustomed, most and preferable laws is that if he did therefore in lack of knowledge of junior liens or other passion he’s going to become subrogated towards previous lien.” G.E. Investment Home loan Servs., Inc. v. Levenson, 338 Md. 227, 231-thirty-two, 657 A good.2d 1170 (1995) (estimating Grams.Elizabeth. Osborne, Handbook towards Laws off Mortgages § 277, within 561 (2d ed.1970)). The key purpose of subrogation is to avoid unjust enrichment during the the expense of various other. Id. on 245, 657 An effective.2d 1170. Put another way, fair subrogation prevents the fresh inequity regarding a celebration possessing an exceptional lien accepting payment away from a third party as opposed to initiating the lien, for this reason enjoying the advantageous asset of the payment while maintaining an exceptional lien top priority into payor.
SunTrust Lender contends one to, regardless of if Maryland process of law have not yet used the latest philosophy away from equitable subrogation so you can an open-finished line of credit, the majority look at, since evidenced because of the citations towards behavior of several of your aunt jurisdictions, disfavors subrogation absent consent throughout the mortgagor to close off the fresh range away from borrowing from the bank.