The Rhode Island Supreme Court has ordered that the matter of CFS 9115, LLC v. Unetixs Vascular, Inc., et al. be briefed in full. The facts of the matter seem straight-forward enough.
The tenants were parties to written but unrecorded leases. The property was sold while the tenants remained in the property. The mortgagors, whom had recorded the mortgage, started eviction proceedings when the tenants would not surrender the premises. The tenants objected and the matter was temporarily settled with the exception for a narrow appeal. On appeal the Rhode Island Supreme Court asked that the matter be fully briefed to answer two narrow questions: Whether the recorded mortgage upon which CFS had foreclosed had priority as a matter of law over the tenants’ unrecorded leases? Stay tuned for the solution on this one as it may have ripple effect throughout how leases are handled going forward, especially in the commercial space. See the Court’s Order at: CFS 9115, LLC v. Unetix Vascular, Inc.