Harris v. Southwest Nat. Bank of Dallas

1928 OK 522, 271 P. 683, 133 Okla. 152, 1928 Okla. LEXIS 1025
CourtSupreme Court of Oklahoma
DecidedSeptember 11, 1928
Docket18017
StatusPublished
Cited by8 cases

This text of 1928 OK 522 (Harris v. Southwest Nat. Bank of Dallas) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Harris v. Southwest Nat. Bank of Dallas, 1928 OK 522, 271 P. 683, 133 Okla. 152, 1928 Okla. LEXIS 1025 (Okla. 1928).

Opinion

LEACH, C.

Guy Harris, plaintiff in error here, as plaintiff below,- on June 14, 1922, obtained a personal judgment against E. Dunlap; thereafter, an execution was issued on such judgment and certain lands belonging to the judgment debtor were levied upon, sold and bid in by the plaintiff and sheriff’s deed issued; thereafter, suit was tiled in the district court of Carter county by plaintiff, Guy Harris, to quiet his title to the lands covered and described in the sheriff’s deed in his favor. Southwest National Bank of Dallas, which is a defendant and cross-petitioner in error here, on October 12, 1923, obtained a personal • judgment against E. Dunlap, and had an execution issued upon such judgment, and certain of the lands of judgment debtor involved in this action were levied upon and sold under such execution and bid in by the Southwest National Bank and L. Herndon, which sale was confirmed and sheriff’s deed issued thereon, and thereafter the Southwest National Bank filed its action in the district court of Carter county to quiet title to the land purchased and bid in by it at such sheriff’s sale.

The suits by Southwest National Bank and Guy Harris to quiet title to the lands involved were consolidated and tried as one action. The trial court found and adjudged that P. C. Garrett, one of the defendants, had and held a mortgage lien against the lands involved, which mortgage was prior and superior to the lien, title and interest of each and all of the parties to the action; that such mortgage lien was prior and superior to the claims of the plaintiffs and other co-defendants whose interests were acquired through judgment liens, notwithstanding the mortgage was not recorded until a date subsequent to rendition of the judgments re *153 ferred to, and judgment creditors had no notice or knowledge of such mortgage at the date of obtaining their judgments or purchase of the lands at sheriff’s sale. The trial court further found and decreed that the First National Bank of Ardmore and Westheimer & Daube had and held a first judgment lien on the lands involved, the First National Bank of Healdton a second judgment lien, First National Bank of Wilson a third judgment lien, Liberty Central Trust Company a fourth judgment lien, Guy Harris, plaintiff, a fifth judgment lien, and Southwest National Bank a sixth judgment lien, and that such judgment creditors each had executions issued yearly on their respective judgments, and under some of t'tó executions levy was made upon property supposed to belong to the judgment debtor, but no levy was made upon the lands involved in this action under any judgment except those in favor of Guy Harris, plaintiff, and Southwest National Bank, and the judgments in favor of other judgment creditors remain unsatisfied. Tne trial court held that the issuance and levy of an execution under the judgments within one year from the date of each, and the good faith effort of the judgment creditors to collect their judgments, were sufficient to preserve the priority of the judgment liens according to the date of the rendition of each judgment and in order herein above stated, such judgment liens being subject to the mortgage lien of the defendant and cross-petitioner, Percy Garrett.

The trial court directed a sale of the lands involved in payment of the liens in the order of their priority, and directed that the plaintiff, Guy Harris, and the defendants Southwest National Bank and L. C. Hern-don might, if they so elect, retain title to the lands purchased and acquired by them at sheriff’s sale by the payment of any and all sums due and owing prior lienholders.

The plaintiff, Guy Harris, and Southwest National Bank each filed their motions for a new trial, which were overruled, and Guy Harris brings the cause here on appeal as plaintiff in error, and the Southwest National Bank has filed herein its cross-petition in error. Under the petitions and assignments of error two questions are raised, presented and argued.

The first question raised and argued by the plaintiff in error, Guy Harris, is, in substance : Is a judgment creditor, who becomes the purchaser of real estate at a judicial sale under an execution on a judgment m his favor, without notice of outstanding prior equities, an innocent purchaser for value? The question arises by reason of the trial court finding and holding that the unrecorded mortgage of Percy Garrett was a superior lien to that of the judgment creditors and the interest acquired by the certain judgment creditors at sheriff’s sale under their executions. The question is not raised or presented in the brief of any of the parties except that of the plaintiff in error, Guy Harris, it being stated in the brief of defendants in error:

“We present no argument upon the question of the priority of the Percy Garrett mortgage for the reason that we understand a compromise of that issue has been agreed upon.”

Assuming, however, that the question has not been agreed upon by plaintiff in error, Guy Harris, and still affects his rights, we have considered his brief and argument on the question and the authorities cited.

Plaintiff in error concedes that, under the law of this state and the holding of this court, a judgment lien is subordinate to a valid prior unrecorded mortgage; that a judgment lien only attaches to what the judgment debtor actually owns, and not to what he apparenntly owns, but contends that he as a judgment creditor became an innocent purchaser for value of the lands sold under the execution in his favor because he expended and paid out the sum of approximately $100 as costs of sale, and surrendered and released his judgment and bid in the land without any notice or knowledge of the unrecorded mortgage in favor of the defendant, Percy Garrett; that under the provisions of section 5251, O. O. S. 1921, the third persons therein referred to include purchasers at public as well as private sale, including judgment creditors who purchase at their execution judgment sale.

“The judgment lien contemplated by Rev. Laws 1910, sec. 514S, is a lien only on the actual interests of the judgment debtor, whatever they may be. Therefore, though he appear to have an interest, if he has none in fact, no lien can attach.

“Where real estate is mortgaged by the owner and such mortgage is not recorded, a judgment lien filed subsequent to the execution of such mortgage is subordinate to said mortgage.” Oklahoma State Bank of Wapanucka v. Burnett, 65 Okla. 74, 162 Pac. 1124.

The case of Gilbreath v. Smith, 50 Okla. 42, 150 Pac. 719, was an action by the plaintiff to set aside sheriff deed to certain real estate sold under execution and bid in by the judgment creditor. The deed under which the plaintiff claimed to deraign his title was executed and delivered prior to *154 the filing of tlie judgment lien, but not recorded until after sheriff’s deed under the execution sale, and it is stated in the body of the opinion as follows:

“At a trial of the cause, the court instructed the jury to find for the plaintiff, which .was done, and a decree was thereupon rendered, canceling the sheriff’s deed and quiet- • ing the title in * * * the * * * plaintiff. Defendants, in their answer, set up the facts substantially as herein stated, claiming that the judgment lien and sale on execution gave .them a superior title. * * *”

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Bluebook (online)
1928 OK 522, 271 P. 683, 133 Okla. 152, 1928 Okla. LEXIS 1025, Counsel Stack Legal Research, https://law.counselstack.com/opinion/harris-v-southwest-nat-bank-of-dallas-okla-1928.