Edward and Terre Capers (defendant) borrowed money from Maplewood Bank & Trust (Maplewood) (plaintiff) to buy real estate. Capers gave Maplewood a purchase money mortgage. The Capers then bought new kitchen from Sears, Roebuck & Company (Sears) (defendant) and gave Sears a purchase-money security interest (PMSI) in the kitchen appliances and goods. Sears made a fixture filing to perfect its interest. The capers then took out a loan from New Jersey Savings Bank (defendant) and executed a second mortgage on the property. The Capers defaulted. Maplewood demanded payment of the remaining balance of its loan and sued for foreclosure when the Capers failed to pay off the note. Sears counterclaimed, arguing that its PMSI had priority over Maplewood’s mortgage and seeking to recover out of Maplewood’s foreclosure funds. Sears’s claim was dismissed. After the foreclosure, Sears appealed its dismissal from the suit.