First National Bank of Izard County v. B & H Resources, LLC, 1:15-cv-00005

First National Bank of Izard County (FNBIC) sued Northstar Farms, LLC to foreclose a mortgage securing a promissory note originally for $320,230.65 dated August 7, 2009; Northstar defaulted.
Gibsland Bank & Trust (Gibsland) filed a third‑party complaint asserting it holds a mortgage on the same Izard County real property securing a $1.2 million promissory note to Coil Tubing Intervention Services, LLC; Coil Tubing defaulted.
Northstar was properly served with Gibsland’s third‑party pleadings but failed to respond; the clerk entered default and a default judgment in favor of Gibsland.
The court found FNBIC’s earlier summary judgment against Northstar established FNBIC’s entitlement to in rem relief for its note and mortgage.
The court determined the property descriptions overlap and that FNBIC’s mortgage is prior and paramount to Gibsland’s mortgage; Gibsland’s lien is superior to other parties’ equities.
The court entered in rem money judgments: FNBIC for $376,023.81 plus daily interest, costs, and $35,860 attorney’s fee; Gibsland for $1,363,659.87 plus daily interest, costs, and fees; authorized public sale and directed marshalship and priority distribution of proceeds.

Issue	Plaintiff's Argument	Defendant's Argument	Held
1. Entitlement to in rem judgment and foreclosure for FNBIC	FNBIC: summary judgment shows Northstar defaulted on note; mortgage secures debt; entitled to judgment and foreclosure	Northstar: did not respond/defend (default)	Court awarded FNBIC in rem judgment for principal, interest, costs, and attorney fee and foreclosure remedy
2. Gibsland’s right to enforce its mortgage against the same property	Gibsland: holds a valid recorded mortgage securing a defaulted $1.2M promissory note; entitled to in rem judgment, fees, and foreclosure	Northstar (nonresponding) — default established allegations as true	Court entered in rem judgment for Gibsland (amounts, per diem interest, costs, attorney fees)
3. Relative priority of liens between FNBIC and Gibsland	FNBIC: its mortgage lien predates and is superior to Gibsland’s lien	Gibsland: asserted mortgage but did not overcome priority claim	Court held FNBIC’s lien is first, valid, and paramount; Gibsland’s lien is inferior to FNBIC but superior to other equities
4. Remedies, sale procedure, and fee allocation	Both lenders: seek foreclosure sale, marshal to conduct sale, proceeds applied to satisfy judgments and fees	N/A (no opposing response)	Court authorized public auction, directed marshal to sell, and specified application of proceeds: costs then FNBIC judgment then Gibsland judgment; awarded specified attorney’s fees and costs