Gregg v. Link

774 S.W.2d 174, 1988 Tenn. App. LEXIS 559
CourtCourt of Appeals of Tennessee
DecidedSeptember 7, 1988
StatusPublished
Cited by1 cases

This text of 774 S.W.2d 174 (Gregg v. Link) is published on Counsel Stack Legal Research, covering Court of Appeals of Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gregg v. Link, 774 S.W.2d 174, 1988 Tenn. App. LEXIS 559 (Tenn. Ct. App. 1988).

Opinion

CRAWFORD, Judge.

This case involves the priority of recorded deeds to real estate. Plaintiffs, Johnny Wayne Gregg, and wife, Shirley Gregg, filed their complaint against defendant, Mildred Link, and sought, among other things, a decree declaring that the Link deed was invalid, that the Gregg deed was valid, and that the Greggs were vested with fee simple title to the real estate in controversy.

The record reveals the following facts pertinent to the issue on appeal.

On February 19, 1979, Ethel Prince, Johnny Wayne Gregg’s aunt and Mildred Link’s sister, executed a deed to plaintiffs, Johnny and Shirley Gregg, which conveyed, subject to a retained life estate, the fee simple title to certain real estate. Johnny Wayne Gregg testified that Mrs. Prince did not want her sister, Mildred Link, to know that she had transferred the property and accordingly, when Mrs. Prince gave the deed to him he put it in his safety deposit box instead of having it recorded at that time. The deed was subsequently recorded on August 5, 1985, shortly before Mrs. Prince’s death. By deed executed on March 6, 1985, Mrs. Prince conveyed an undivided one-half interest in the same real estate to her sister, the defendant, Mildred Link. Mrs. Link had this deed recorded in the Register’s Office on March 8, 1985. Mrs. Link testified that she had no knowledge of the deed to the Greggs until told of it by Mr. Gregg, after Mrs. Prince’s death.

At the conclusion of the trial, the chancellor found that defendant, Mildred Link, was a donee of a gift and not a purchaser for value of the real property, and that the deed from Ethel Prince to the Greggs was validly delivered. The chancellor held that [175]*175the prior deed to the Greggs as donees, which was recorded last, had priority over the subsequent deed to the donee, Mildred Link, which was recorded first, and he thereupon declared the Link deed invalid.

Defendant has appealed and presents three issues for review. Defendant’s second and third contentions are that the chancellor erred in finding that she was a donee and not a bona fide purchaser from Ethel Prince and that the chancellor erred in finding that there was a valid delivery of the deed from Ethel Prince to the Greggs. We will consider these issues together.

Since this case was tried by the court sitting without a jury, we review the case de novo upon the record with a presumption of correctness of the findings of fact by the trial court. Unless the evidence preponderates against the findings, we must affirm, absent error of law. T.R.A.P. 13(d).

We have examined the record and from our examination we cannot say that the evidence preponderates against the findings of the chancellor on these two issues. To the contrary, the record clearly supports the chancellor’s findings that Link was a donee of Ethel Prince and that there was a valid delivery of the deed to the Greggs. These issues are without merit.

The first issue presented for review is whether the chancellor erred in holding that the prior deed recorded last has priority over the subsequent deed recorded first.

The recording statutes pertinent to the issue before the Court are T.C.A. §§ 66-26-101, 66-26-103, and 66-26-105 (1982) which we quote:

66-26-101. Effect of instruments with or without registration. — All of the instruments mentioned in § 66-24-101 shall have effect between the parties to the same, and their heirs and representatives, without registration; but as to other persons, not having actual notice of them, only from the noting thereof for registration on the books of the register, unless otherwise expressly provided.
66-26-103. Unregistered instruments void as to creditors and bona fide purchasers. — Any of said instruments not so proved, or acknowledged and registered, or noted for registration, shall be null and void as to existing or subsequent creditors of, or bona fide purchasers from, the makers without notice.
66-26-105. — Priority of registered instruments. — Any of said instruments first registered or noted for registration shall have preference over one of earlier date, but noted for registration after-wards; unless it is proved in a court of equity, according to the rules of said court, that the party claiming under the subsequent instrument had full notice of the previous instrument.

It is uncontroverted that Mrs. Link had no actual knowledge or notice of the deed from Mrs. Prince to the Greggs. She therefore contends that T.C.A. § 66-26-105 is controlling and her deed, as first recorded, should be given preference. She argues that her contention is supported by the decision of our Supreme Court in Simpkinson v. McGee. 72 Tenn. (4 Lea) 432 (1880), which considered the recording statutes derived from 1831 Tenn.Pub.Acts 90, the same statutes as set out above. In Simpkinson, the question for determination by the Court was the priority between a claimant under an unregistered deed and the trustee and beneficiaries under a subsequent, but earlier recorded, assignment from the same grantor to secure pre-exist-ing debts. In holding that the subsequently dated, but earlier recorded, assignment prevailed, the Court said:

The Chancellor seems to have thought that the preference given by the Code to the instrument first registered, applied only when the claimants under it stood in the attitude of bona fide purchasers for value in the common law sense, as well as without notice, and that, as assignees under a voluntary assignment for creditors, are not such purchasers, according to the decisions, the preference could not be allowed them. The language of the next section of the Code to the one above cited, taken also from the Act of 1831, may have influenced the conclusion. That section is: “Any of said instruments not so proved or acknowledged [176]*176and registered, or noted for registration, shall be null and void as to existing or subsequent creditors of, or bona fide purchasers from, the makers without notice.” The previous section gives preference to instruments in the order of registration, subject only to the condition of the want of notice of the prior equity. This section declares the effect of an unregistered instrument as against creditors and bona fide purchasers of the grantor. The two provisions, constituting sections 6 and 12 of the original Act, are not in conflict, nor does either necessarily control the other.

Id. at 435-36. The Court then discussed the nature of an assignment for pre-exist-ing debts, and noting that in some cases assignees were treated as volunteers stated: “It has always been so held in this State, when it could be done consistently with the positive provisions or the policy of the registration laws.” Id. at 436-38. After further discussion on this point, the Court said:

... there can be no doubt that an unregistered conveyance or agreement to convey must yield to a registered trust assignment for creditors, without notice, because the case is directly within the letter and the intent of the statute. There are cases which seem to treat the beneficiaries in such an assignment as creditors within the Code, sec.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Hulsey v. Bush
839 S.W.2d 411 (Court of Appeals of Tennessee, 1992)

Cite This Page — Counsel Stack

Bluebook (online)
774 S.W.2d 174, 1988 Tenn. App. LEXIS 559, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gregg-v-link-tennctapp-1988.