• Virginia Federal District Court Rejects Equitable Subrogation Claim
  • August 15, 2013 | Author: James L. Windsor
  • Law Firm: Kaufman & Canoles A Professional Corporation - Newport News Office
  • On July 31, 2013, the United States District Court for the Eastern District of Virginia issued a Memorandum Opinion denying Deutsche Bank National Trust Company’s equitable subrogation claim. Deutsche Bank Nat’l Trust Co. v. United States of America, 2013 U.S. Dist. LEXIS 107423 (E.D. Va. 2013). In February 2001, Mr. and Mrs. Gaines obtained a purchase money loan from IndyMac Bank, F.S.B. secured by a deed of trust. On April 2, 2002, the United States Justice Department filed a Notice of Lien for Fine and/or Restitution Pursuant to the Anti-Terrorism and Effective Death Penalty Act of 1996 against Mr. Gaines in the amount of $689,216.86. In June 2003, the Gaines’ obtained a refinance loan from IndyMac. The proceeds of the IndyMac refinance loan paid off the purchase money loan and a number of creditors. The Gaines’ received $14,359.12 in cash. The closing file for the refinance loan contained a note regarding the restitution lien, however it was not paid off. In September 2003, the IRS filed a notice of tax lien against Mr. Gaines.