Norfolk State Bank v. Murphy

38 L.R.A. 243, 59 N.W. 706, 40 Neb. 735, 1894 Neb. LEXIS 348
CourtNebraska Supreme Court
DecidedJune 5, 1894
DocketNo. 5658
StatusPublished
Cited by7 cases

This text of 38 L.R.A. 243 (Norfolk State Bank v. Murphy) 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
Norfolk State Bank v. Murphy, 38 L.R.A. 243, 59 N.W. 706, 40 Neb. 735, 1894 Neb. LEXIS 348 (Neb. 1894).

Opinions

Nor val, C. J.

On the 24th day of June, 1890, appellee Fred W. Gray commenced an action in the district court of Douglas county against Martin T. Murphy to recover the amount due on a promissory note executed by Murphy. Summons was duly served upon Murphy on June 26, and at the September, 1890, term of said court, to-wit, on the 3d day of January, 1891, Gray recovered a judgment in said action against Murphy for $1,285.49 and costs. The’September term, 1890, of the district court of the county of Douglas convened on the 22d day of September. After the commencement of said suit, and while the same was pending, on the 29th day of November, 1890, Murphy and his wife gave to appellant, the Norfolk State Bank, a mortgage upon certain real estate in Douglas county to secure the payment of a promissory note for $4,676.70, executed by Murphy to cover his overdrafts on the bank. The property described in the mortgage was owned by Murphy prior to the commencement of the term of court at which the judgment aforesaid was rendered. On the 11th day of September, 1891, the Norfolk State Bank brought its action in the court below to foreclose said mortgage, to which the Murphys, Fred W. Gray, and others were made defendants. Gray filed an answer, setting up said judgment, and [737]*737praying that the same be decreed a lien on the premises included in plaintiff’s mortgage prior to the lien of the mortgage. Upon the trial a decree was entered foreclosing the mortgage, but making the lien thereof junior to the judgment lien of Gray.

‘The sole question to be decided on this appeal is, which lien has priority, the mortgage or judgment? The determination of the question necessitates an examination of section 477 of the Code of Civil Procedure, which reads as follows:

Sec. 477. The lands and tenements of the debtor within the county where the judgment is entered shall be bound for the satisfaction thereof, from the first day of the term at which judgment is rendered; but judgments by confession, and judgments rendered at the same term at which the action is commenced, shall bind such lands only from the day on which such judgments are rendered. All other lands, as well as goods and chattels of the debtor, shall be bound from the time they shall be seized in execution.”

The language just quoted is too plain to admit of more than one construction, and that is, all judgments rendered in a district court in actions brought therein prior to the term, except judgments by confessions, become liens upon the real estate of the judgment debtor situate within the county from the first day of the term. At common law all judgments of a court of record relate back to the first day of the term, and are regarded as rendered on that day, no matter on what day of the term they were actually entered. Our statute is declaratory of the rule of the common law, and places all judgments of a district court, except rendered on confession, or in cases in which actions were instituted .during the term, upon equality in regard to liens. The judgment of Gray has relation to the first day of the term at which the same was recovered, and was a lien upon the lands owned by Murphy within the county from the first day of such term. The same construction was [738]*738placed upon the statute in Miller v. Finn, 1 Neb., 294, and was followed in the case of Colt v. Du Bois, 7 Neb., 391.

■ It is insisted by counsel for plaintiff in error that the-section quoted merely determines the priority of liens of judgment creditors as between themselves; and further, that the lien of a mortgage duly recorded during a term of court,, and before the entry of a judgment at that term, is paramount to the lien of a judgment. We are unable to so-construe the statute. It in express terms declares that “the lands and tenements of the debtor within the county where the judgment is entered shall be bound for the satisfaction thereof, from the first day of the term at which judgment is rendered.” Plainer language could not have been selected. The lien of a judgment does not attach merely to the debtor’s interest in lands when the judgment is obtained, but to whatever interest therein he possessed on the first day of the term at which the same was entered. To hold otherwise would be to make the law, and not simply to apply the same. A judgment being a lien upon real estate from the first day of the term, such lien is superior to the lieu of a mortgage subsequently given by the debtor. To adopt the construction contended for by counsel would be injecting words into the statute by judicial interpretation, which we have no power to do. Had the legislature intended that the doctrine of relation as to lien of judgments should not apply where a mortgage is recorded before the judgment is actually entered, it would have used apt words indicative of such purpose. Our conclusion is that the lien of the mortgage is junior to that of the judgment. The construction we have given the section does not conflict with the prior decisions of this court cited in the brief of counsel, as a cursory examination of the cases will disclose.

In Galway v. Malchow, 7 Neb., 285, certain judgments-were recovered against Malehow after the recording of a mortgage given by him to the plaintiffs. By mistake the land intended to be included in the mortgage was described [739]*739as being in section 28 instead of section 33. It was held that the lien of the judgments were subject to the equity of the mortgage. The proposition we have béen discussing was not involved nor passed on in that case. That decision simply affirms the doctrine that a judgment upon real estate is subject to all prior equities existing against the debtor at the time of its becoming a lien. This court did not undertake to decide at what date the lien of a judgment attaches to the lands of the defendant. The rule stated in Galway v. Malchow has been reaffirmed and applied in Metz v. State Bank of Brownville, 7 Neb., 165; Mansfield v. Gregory, 8 Neb., 434, 11 Neb., 297; Leonard v. White Cloud Ferry Co., 11 Neb., 338; Dewey v. Walton, 31 Neb., 819. It is unnecessary to point out the difference between the facts upon which they were decided and those in the case we are considering. It is sufficient to say that in none of the cases mentioned was section 477 of the Code' before the court for consideration, nor was the question' raised by this record discussed therein. Under the above authorities a judgment lien is subject to all prior liens on the land of the defendant; but this principle does not militate against the construction we have given section 477. Had plaintiff’s mortgage been made before the term of court at which Gray’s judgment was entered, although recorded subsequent thereto, the cases would have some bearing here; but it was not so made, hence the judgment lien antedates the mortgage. The effect of the decisions of this court is that a creditor acquires no better right to his debtor’s property than the latter himself has. The lien-of a judgment is subordinate to all equities which existed in favor of third parties when the lien of the judgment attaches. In other words, the lien of a judgment is limited to the actual interest the debtor has in the property.

Another decision of this court relied on by the appellant is Horn v. Miller, 20 Neb., 98. It was there ruled that the time within which to perfect an appeal taken from a [740]

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Bluebook (online)
38 L.R.A. 243, 59 N.W. 706, 40 Neb. 735, 1894 Neb. LEXIS 348, Counsel Stack Legal Research, https://law.counselstack.com/opinion/norfolk-state-bank-v-murphy-neb-1894.