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NEROX POWER SYSTEMS v. M-B CONTRACTING CO.

No. S-9922.

54 P.3d 791 (2002)

NEROX POWER SYSTEMS, INC.; Nerox Energy Corporation, a/k/a E*Two Media.Com; William D. Artus; Coal Factors, Inc.; The LKL Trust; John Wallace, Trustee for the Wallace M.D. Family Trust; Gretchen A. Ross, Trustee for the G.A.R. Trust; and Nicholas E. Ross, Appellants, v. M-B CONTRACTING COMPANY, INC.; Tope Equipment Company; Alaska Law Offices, Inc.; and Steven Jones, Appellees.

Supreme Court of Alaska.

September 13, 2002.

Attorney(s) appearing for the Case

William L. Choquette, Choquette & Farleigh, LLC, Anchorage, for Appellants.

Robert J. Dickson, Atkinson, Conway & Gagnon, Anchorage, for Appellee M-B Contracting Company, Inc.

Gary Spraker, Bundy & Christianson, Anchorage, for Appellee Tope Equipment Company.

Don C. Bauermeister, Burke & Bauermeister, PLLC, Anchorage, for Appellees Alaska Law Offices and Steven Jones.

Before: FABE, Chief Justice, EASTAUGH, BRYNER, and CARPENETI, Justices.

OPINION

FABE, Chief Justice.

I. INTRODUCTION

In April 1997 Nerox Power Systems, Inc. recorded two deeds of trust encumbering mining rights to the Jonesville coal mine in Sutton, for the purpose of securing repayment of debts to certain alleged creditors. At issue in this appeal is the superior court's decision to give other creditors lien priority over the deeds of trust under the doctrine of equitable subordination. A second issue concerning...

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