Action Realty Co., Inc. v. Miller

215 N.W.2d 629, 191 Neb. 381, 1974 Neb. LEXIS 869
CourtNebraska Supreme Court
DecidedFebruary 28, 1974
Docket39165
StatusPublished
Cited by10 cases

This text of 215 N.W.2d 629 (Action Realty Co., Inc. v. Miller) is published on Counsel Stack Legal Research, covering Nebraska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Action Realty Co., Inc. v. Miller, 215 N.W.2d 629, 191 Neb. 381, 1974 Neb. LEXIS 869 (Neb. 1974).

Opinion

Clinton, J.

The question' involved on this appeal is whether or not a judgment for child support rendered on August 13, 1958, against Ronald J. Amen became a lien on certain real estate. The plaintiff, a purchaser of the property in question, sought to quiet title as against the claimed lien. The District Court quieted title in the plaintiff subject to the judgment lien for child support. The plaintiff appeals. We determine the judgment never became a lien upon the interest.of Ronald J. Amen and reverse and remand the cause with directions to grant the relief prayed for.

On appeal of an action in equity to this court we try the case de novo. Wecker v. Wecker, 166 Neb. 19, 87 N. W. 2d 624; State ex rel. Heintze v. County of Adams, 162 Neb. 127, 75 N. W. 2d 539.

*383 There is no fundamental conflict in the evidence nor, as we see it, in the inferences to be drawn therefrom and on trial de novo we determine the facts to be as follows: On August 13, 1958, the defendant, Marjorie L. Miller, then Marjorie L. Amen, was divorced from Ronald J. Amen and was awarded judgment for child support in the amount of $50 per month. On August 13, 1963, the award was increased to $80 per month. Amen, on or about June 18, 1962, entered into a contract to purchase the subject property from one Payne. The contract is not in evidence, but such evidence as is before us indicates that it required a cash downpayment of $250 and monthly installments over a period of years. The $250 was paid by Amen to Payne. A deed from Payne to Amen and his present wife was executed but not delivered. On or about August 14, 1962, Amen and his wife entered into a written contract to sell the property to Brocks. At that time an escrow agreement was executed as well as a deed from Amens to Brocks. This deed, together with a copy of the contract, was placed in escrow with the Union Bank. The escrow agreement signed by the Amens and the Brocks referred to deposit of one deed and made reference to the contract of sale. The escrow agreement contained the following instructions: “4. DELIVERY INSTRUCTIONS: Deliver to buyer upon fulfillment of this contract or upon the signatures of all of the parties whose signatures are attached hereto. 5. OTHER INSTRUCTIONS: Escrow office will set up savings account for sellers and place collections to their account as received. Escrow office will pay on escrow account of Lorango D. Payne and Frances G. Payne. Husband and wife Forty five and no/100 ($45.00) dollars each month from sellers savings account until fulfillment of this contract.” (Emphasis supplied.)

The contract between Amen and Brock called for a purchase price of $3,600 with a downpayment of $900 *384 and the balance, including interest, at the rate of $55 per month. Brock made the- downpayment and took possession. After Brock had made two installment payments to' the escrow agent, Payne contacted Brock and the same day the two of. them went together. to the Union Bank escrow office. -What transpired on that occasion is not shown by the evidence except by inference. Brock made all his payments to the Union Bank. In October 1965 Brock sold his interest to plaintiff Action Realty Co., Inc., and received therefor $3,500. Thereafter plaintiff made the installment payments to Union Bank and on August 1, 1966, paid the balance of $700.88. At that time it received from Union Bank the deeds from Payne to Amen and from Amen to Brock. Both deeds were recorded on August 2, 1966. Neither Amen nor Brock had at any time possession of either of these deeds. The evidence is not clear as to the time when the Payne-Amen deed was delivered to the Union Bank. The evidence is clear, however, that there was never any delivery to Amen. It is a reasonable inference from the evidence that Payne, probably on the occasion of his visit to the Union Bank in the company of Brock, placed the deed in escrow for delivery under the same terms as provided under the written escrow agreement between Amen and Brock.

Not until after August 1, 1966, did the plaintiff make any record check or cause an abstract to be made and examined. If a lien of the child support judgment attached to the interest of Amen then the plaintiff took subject to it.

The plaintiff’s theory is that the lien of a judgment does not attach to an equitable interest; that Amen had only an equitable interest which continued only until final payment was made to the bank as escrow agent just before delivery of the deed; and that when the deed from Payne together with the deed from Amen to Brock were delivered to the plaintiff by the agent on *385 August 1, 1966, only the bare legal title passed through Amen and the lien can affect only the judgment debt- or’s actual interest which was then nil.

The following principles from the decided cases in this jurisdiction support the plaintiff’s position. A judgment is not a lien upon the judgment debtor’s equitable interest in real estate until the commencement of the creditor’s bill to subject the equitable interest to the payment of the judgment or until execution is levied upon the interest of a judgment debtor who is in possession of the real estate in which he has the equitable interest. Nowka v. Nowka, 157 Neb. 57, 58 N. W. 2d 600; Nessler v. Neher, 18 Neb. 649, 26 N. W. 471; Rosenfield v. Chada, 12 Neb. 25, 10 N. W. 465; 92 C. J. S., Vendor & Purchaser, § 315c, p. 206; Flint v. Chaloupka, 72 Neb. 34, 99 N. W. 825; First Nat. Bank of Plattsmouth v. Tighe, 49 Neb. 299, 68 N. W. 490; Steven v. Ford, 187 Neb. 401, 191 N. W. 2d 446; First Nat. Bank v. Spelts, 94 Neb. 387, 143 N. W. 218.

The lien of a judgment does not attach to the mere legal title where the equitable and beneficial interest is in another. Cresswell v. McCaig, 11 Neb. 222, 9 N. W. 52; Withnell v. Courtland Wagon Co., 25 F. 372; 49 C. J. S., Judgments, § 481, p. 920; Knaak v. Brown, 115 Neb. 260, 212 N. W. 431, 51 A. L. R. 237; First Nat. Bank v. Spelts, supra; Roberts v. Robinson, 49 Neb. 717, 68 N. W. 1035.

The interest of a vendee under the contract to purchase where no deed has been delivered is an equitable one which may be subjected to the judgment of a creditor of the vendee by appropriate proceedings. 92 C. J. S., Vendor & Purchaser, § 315, p. 205; 49 C. J. S., Judgments, § 480 b, p. 920; Rosenfield v. Chada, supra; Nessler v. Neher, supra; Nowka v. Nowka, supra.

The lien of a judgment for child support or alimony constitutes a lien the same as other monetary judgments and is a lien not only for past due installments *386 but also as security for installments to fall due in the future. Nygren v. Nygren, 42 Neb. 408, 60 N. W. 885; Wharton v. Jackson, 107 Neb. 288, 185 N. W. 428; Lynch v. Rohan, 116 Neb. 820, 219 N. W. 239.

A party acquiring an interest in real estate after the judgment lien for child support has attached takes the property subject to the lien of the judgment for all installments due or to become due. McCord v. McCord, 128 Neb. 230, 258 N. W. 474.

The appellee Miller relies upon Milligan v. Milligan, 161 Neb. 499, 74 N. W. 2d 74, to support the proposition that delivery to the escrow agent of the Payne to Amen deed passed legal title to Amen while he still had a beneficial interest.

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Bluebook (online)
215 N.W.2d 629, 191 Neb. 381, 1974 Neb. LEXIS 869, Counsel Stack Legal Research, https://law.counselstack.com/opinion/action-realty-co-inc-v-miller-neb-1974.