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Capitol Federal Savings and Loan Association v. Hoger
Court of Appeals of Kansas
880 P.2d 281 (1994)
Capitol Federal Savings and Loan Association (Capitol Federal) (plaintiff) gave a mortgage to Paul and Margaret Hoger (defendants) on the Hogers’ property in Kansas. The mortgage was recorded in 1984. In 1990, the Kansas Power and Light Company (KPL) sold the Hogers a furnace and air conditioner, which became fixtures upon installation in the Hogers’ home. To finance the purchase of these fixtures, KPL gave the Hogers a loan and filed a purchase-money security agreement without Capitol Federal’s knowledge or consent. The Hogers defaulted on the loans with Capitol Federal and with KPL’s successor, Capitol Federal and Western Resources, Incorporated (Western) (defendant). In 1992, Capitol Federal sued to foreclose its mortgage. Western counterclaimed that the security interest Western held in the Hogers’ fixtures had priority over Capitol Federal’s mortgage. Capitol Federal moved for summary judgment, claiming that a previously recorded mortgage had priority over Western’s purchase-money security interest. The trial court denied Capitol Federal’s motion and ordered Capitol Federal to pay Western the amount claimed for the fixtures. Capitol Federal appealed.
Rule of Law
Holding and Reasoning (Briscoe, C.J.)
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