Atlanta National Bank v. Brown

159 S.E. 874, 173 Ga. 213, 1931 Ga. LEXIS 297
CourtSupreme Court of Georgia
DecidedAugust 15, 1931
DocketNo. 8194
StatusPublished
Cited by1 cases

This text of 159 S.E. 874 (Atlanta National Bank v. Brown) is published on Counsel Stack Legal Research, covering Supreme Court of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Atlanta National Bank v. Brown, 159 S.E. 874, 173 Ga. 213, 1931 Ga. LEXIS 297 (Ga. 1931).

Opinion

Moseley, J.

The following is a substantial statement of the facts of this case: The Atlanta National Bank brought suit against W. L. Brown, on a promissory note given by him to the Bank of Lawrenceville, and transferred by the Bank of Lawrenceville to the plaintiff. This note, as stated on its face, was a renewal of a [214]*214former note given by the same maker to the Bank of Lawrence-ville. W. L. Brown, at the time of making and delivering the original note, executed and delivered to the Bank of Lawrenceville a deed to certain described property to secure the payment of that note. This security deed was not transferred by the Bank of Lawrenceville to the plaintiff by writing, but was attached to the renewal note, which was so transferred, and which contained the following statement: “And to secure the prompt payment of this note, or any other indebtedness due or to become due the Bank of Lawrenceville, or the holder of this note, being possessed of the legal right and title to make deposit, hereby pledge the following collateral and property, which I affirm to be unincumbered. Deed attached. This note is a renewal of indebtedness for which the attached deed was originally given to secure.” The description of the land as set out in the security deed attached to the note transferred is set out in the suit of Atlanta National Bank v. W. L. Brown, with a prayer for general judgment, and for a special lien on the land so described. This suit was filed in the clerk’s office of the superior court of Gwinnett County on August 14, 1923; and process was issued and served on the defendant on August 18, 1923. The deed referred to in said suit was dated August 26, 1919, and was recorded on January 4, 1921. To this suit W. L. Brown filed defenses. He admitted the signing of the note and deed, but denied any liability thereon, for reasons stated in his plea. He pleaded set-off, denying the allegation that the plaintiff was the holder of said note before due, and alleging that he was entitled to all the defenses against plaintiff that he was entitled to against the Bank of Lawrenceville. He denied that the plaintiff had any lien on the property described.

The plaintiff filed an amendment, which was allowed, alleging that said note was transferred to it before maturity, and that it was the legal holder thereof; and that, while there was no written transfer of the security deed, the transfer of the note which the deed was given to secure carried to plaintiff the benefit of the security, and that it had an equitable interest in the property on which it asked again for a special lien. An intervention by W. H. Hutchins was allowed and filed on March 3, 1930. He alleged that W. L. Brown was indebted to him a certain sum on a promissory note, and had given to him a security deed to the same prop[215]*215erty already referred to, which note and deed were dated December 10, 1923; that this security deed was duly recorded, and' intervenor claimed that this deed was a lien superior to that of the plaintiff, for the reason that he had no notice of the deed held by plaintiff at the time of the taking and recording of his deed, as the deed held by plaintiff was not properly witnessed for record, it being witnessed by two stockholders in the Bank of Lawrence-ville, and that the probate was not sufficient to admit the deed to record, and therefore it was not notice to him, and that he had no notice of the pending suit of plaintiff. He prayed that he have judgment on his note, and that it be a special lien on said property superior to that of plaintiff.

On March 3, 1930, the plaintiff filed its equitable petition ancillary to its original suit, setting out the facts that W. L. Brown had given his note to W. H. Hutchins, with deed to the same property held as security by plaintiff, on December 10, 1923, after the suit of plaintiff was filed and served, for the sum of $1790; and that on the same date he gave to his wife, Mrs. Eva Brown, his note for $720, with a security deed to the same property; that W. L. Brown (who was insolvent) had allowed the state, county, and city taxes to accumulate, and tax fi. fas. to be issued against the property, which' he and his wife claimed to have been paid off by and transferred to her, she claiming also that they were a lien superior to all other liens. Plaintiff further alleged that the property would not bring the amount of the debt; and that defendant and his wife were living on the property, collecting the rents, prolonging the litigation, and allowing these taxes to accumulate and be paid off by the wife, in order to collect the same if not successful in this litigation. It was prayed that Mrs. Eva Brown be made a party, and that she set up her claims, if any, in this suit; and that a receiver be appointed to take charge of said property. Also, that plaintiff’s judgment and lien be declared superior to the claims of Hutchins or Mrs. Brown. Mrs. Brown was made a party. She filed her plea setting up her claims on the tax fi. fas. held by her, averring that she purchased them from the proceeds of her own separate estate. She prayed that they be declared the first lien on said property, that she have judgment on her note against her husband, and that the same be a special lien on the property with equal dignity and rank with Hutchins, and superior to the claim of the plaintiff.

[216]*216By agreement the case was submitted to the trial judge, without the intervention of a jury. After a hearing, the court rendered the following decree:

(1) That the fi. fas. for State and county and city taxes held by Mrs. Eva Brown, aggregating $551.11, besides interest and cost, be declared superior to all other liens held by the parties, and be first paid from the proceeds of the sale of the property.

(2) That the Atlanta National Bank recover of W. L. Brown $2240 principal, with $1568 as interest to date of judgment, and with future interest at 8 per cent., $380 attorney fees, and costs of suit.

(3) That W. H. Hutchins recover of W. L. Brown $1790 principal, $960.58 interest to date of judgment, and future-interest at 8 per cent.

(4) That Mrs. Eva Brown recover of W. L. Brown $720 principal, $386.40 interest to date of judgment, and future interest at 8 per cent., on the note held by her.

(5) That on sale of the property all costs and receiver’s fees be paid first out of the proceeds.

(6) That special liens be established against the property, and priorities of said special liens were fixed as follows: 1st. The liens for taxes in favor of Mrs. Eva Brown. 2d. The judgments in favor of W. H. Hutchins and in favor of Mrs. Eva Brown against W. L. Brown being of equal rank, to be paid pro rata next after the payment of taxes. 3d. The judgment in favor of Atlanta National Bank against W. L. Brown. The Atlanta National. Bank filed a motion for new trial, the grounds of which will hereinafter appear. The court overruled the motion, and the plaintiff excepted.

Did the court commit error in holding that the tax fi. fas. transferred to and held by Mrs. Eva Brown were liens superior to all others, to be first paid out of the proceeds of the property? “Taxes shall be paid before any other debt, lien, or claim whatsoever, and the property returned or held at the time of giving in, or after, is always subject.” Code (1910), § 1140.

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Bluebook (online)
159 S.E. 874, 173 Ga. 213, 1931 Ga. LEXIS 297, Counsel Stack Legal Research, https://law.counselstack.com/opinion/atlanta-national-bank-v-brown-ga-1931.