in its conclusions of law: L. Irrespective of the validity of the note and mortgage, Kida is liable to Beneficial [Hawaii] under the Doctrine of Equitable Subrogation. Under the Doctrine of Equitable Subrogation, one who advances money to pay off an encumbrance with the express understanding that it is to be secured by a first lien on the property will be subrogated to the rights of the prior en-cumbrancer in the event that the new security is for any reason not a valid first lien on the property (unless superior or equal equities will be prejudiced). Smith v. State Savings & Loan Assn., 175 Cal.App.3d 1092, 223 Cal.Rptr. 298 (1985); [Rock River] Lumber Corp. v. Universal Mortgage Corp., [82 Wis.2d 235] 262 N.W.2d 114 (Wis.1978); Peters v. Weatherwax, 69 Haw. 21, 731 P.2d 157 (1987) (<HOLDING>); Hawaiian Government v. Cartwright, 8 Haw. 697
recognizing that the determination is an equitable one holding that under the doctrine of equitable subrogation equity will grant relief where a mortgage is satisfied by mistake and no rights of third parties have intervened if the mistaken action was reasonable recognizing the longstanding rule that insurers may not apply equitable subrogation against their insureds recognizing cause of action for equitable estoppel under erisa recognizing equitable subrogation