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IN RE DEUEL

No. 07-55266.

594 F.3d 1073 (2010)

In the Matter of Jill C. DEUEL, Debtor, Chase Manhattan Bank, USA, N.A., Appellant, v. Harold S. TAXEL, Trustee, Appellee.

United States Court of Appeals, Ninth Circuit.

Submitted September 29, 2009.

Filed January 28, 2010.

Attorney(s) appearing for the Case

James C. Mitchell, Mitchell & Gilleon, San Diego, CA, for the appellant.

Michael Y. MacKinnon, Kathleen A. Cashman-Kramer, Pyle Sims Duncan & Stevenson, APC, San Diego, CA, for the appellee.

Before: ALEX KOZINSKI, Chief Judge, ANDREW J. KLEINFELD and JOHNNIE B. RAWLINSON, Circuit Judges.

KLEINFELD, Circuit Judge:

We address the "strong-arm power" of the bankruptcy trustee under 11 U.S.C. § 544(a)(3) in the context of an unrecorded deed of trust. The question comes down to whether a bona fide purchaser for value without notice can take ahead of an unrecorded lien, and once the question is put that way, the answer is obviously "yes."

I. Facts

The case arises out of repeated home refinancing to take advantage of rising real estate...

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