LIBERTY NAT. BK. & TRUST v. VANDERKRAATS

No. 94-CA-001329-MR.

899 S.W.2d 511 (1995)

LIBERTY NATIONAL BANK AND TRUST COMPANY OF LOUISVILLE, Appellant, v. Frank J. VANDERKRAATS; Virginia Vanderkraats; The Cumberland Federal Savings Bank (Formerly Avery Federal Savings and Loan Association); PNC Bank, Kentucky, Inc. (Formerly Citizens Fidelity Bank and Trust Company); Revenue Cabinet, Commonwealth of Kentucky; Internal Revenue Service, United States of America and Wathen Spalding, Appellees.

Court of Appeals of Kentucky.

June 9, 1995.


Attorney(s) appearing for the Case

Lisa Koch Bryant, David W. Gray, Katherine Gail Russell, Louisville, for appellant.

Dennis J. Stilger, Louisville, for appellee, Frank Vanderkraats.

Virginia Vanderkraats, Louisville, pro se.

William K. Sparks, Louisville, for appellee, Cumberland Federal Sav. Bank (Formerly Avery Federal etc.).

Edward L. Galloway, Louisville, for appellee, PNC Bank, Kentucky, Inc. (Formerly Citizens Fidelity etc.).

Barbara Curtin Kenney, Frankfort, for appellee, Revenue Cabinet, Com. of Ky.

Michael F. Spalding, Louisville, for appellee, I.R.S., U.S. of America.

Scott A. Simon, Louisville, for appellee, Wathen Spalding.

Before COMBS, GUDGEL and SCHRODER, JJ.


SCHRODER, Judge:

This case arises out of a mortgage foreclosure which interpreted KRS 134.420 as affording the Commonwealth priority for tax liens ahead of the mortgagee where part of the tax liability was assessed after the recording of the mortgage.

A condensed version of the facts is that on September 15, 1976, the appellees, Frank and Virginia Vanderkraats (Taxpayers) purchased a home (Premises) in Jefferson County. The Taxpayers received a $108,613.14...

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