Shepherd v. Burkhalter

13 Ga. 443
CourtSupreme Court of Georgia
DecidedJuly 15, 1853
DocketNo. 65
StatusPublished
Cited by19 cases

This text of 13 Ga. 443 (Shepherd v. Burkhalter) 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
Shepherd v. Burkhalter, 13 Ga. 443 (Ga. 1853).

Opinion

By the Court.

Starnes, J.

delivering the opinion.

This is a contest between a purchaser, claiming land by virtue of a Sheriff’s sale, under certain Common Law fi. fas. and the plaintiffs in a mortgage fi. fa. issued against the same land, and it involves a question of priority of lien.

The date of the mortgage is prior to that of the fi. fas. but the claimant insists that it was not recorded within the time prescribed by law, nor foreclosed before the Common Law judgments against the mortgagor were obtained, and that the latter consequently gains a preference.

To this it is objected, that the purchaser had notice of the mortgage, though it was not recorded ; that the land in question was sold by the Sheriff, subject to the mortgage, and that it was in fact recorded.

The provisions of our Statute law on the subject of recording mortgages of land are as follows:

The 2d section of the Act of 1827, requires that all deeds of mortgage upon real property, “ shall be recorded in the Clerk’s office, &c. within three months from the date of such deed. ” The 4th section provides, that “ upon failure to record any mortgage, as hereinbefore required, within the time or times hereinbefore specified for recording the same, that [447]*447then and in such case, all judgments obtained before the foreclosure of the said mortgage, and also any mortgage executed after the same, and duly recorded, shall take lien on the said mortgaged property in preference to 'the said mortgage.”

[1.] In view of the terms of this Statute, it is our opinion (especially in the absence of proof affecting the conscience of the judgment creditor AYith notice) that if the mortgage in this case YYere not recorded in time, the lien of these judgments obtained in the Justices’ Court, attached to the land; and when it was sold under and by virtue of this lien, the purchaser, whether he had notice of the unrecorded mortgage or not, took the interest which was sold, viz : the estate of the judgment creditor in the land, and quoad that interest in the estate, must be subrogated to the rights of the creditor.

[2.] The notice given by the mortgagor, Wells, at the Sheriff’s sale, and the proclamation made by the Sheriff, in consequence, that he sold the land subject to the mortgage, cannot affect this view of the case ;.for the reason, that the Sheriff sold the interest of the judgment creditor, whatever that was, when he sold subject to the mortgage ; and if that interest was a priority of lien upon the land, to the extent of that lien it was superior, of course, to the interest of the mortgagee. In such case, neither the notice nor the Sheriff’s proclamation could change the law and divest the lien of the judgment; and fro tanto, the purchaser certainly took title to the property sold.

By some Courts it has been held, that a deed not duly registered, is void as to creditors, with or without notice. Washington vs. Trousedale, Mart. & Yerg. 385. And that a purchaser, in behalf of the creditor, holds the rights and occupies the place of the creditor, and will not be affected by notice of an unrecorded deed. Guerrant vs. Anderson, 4 Rand. 208.

The Supreme Court of Massachusetts, on the other hand, has held, that a creditor with notice .of a previous unregistered conveyance for a valuable consideration, cannot, by attachment and levy, obtain a title against the grantee. Priest vs. Rice, 1 Pick. 164.

[448]*448However this may be, there is nothing in this record which brings home notice to the creditor, and the case is not placed upon that ground.

[3.] If the rights of the purchaser, in this case, were affected by notice of the unrecorded mortgage, it could only be as to so much of the mortgaged premises as exceeded in value the amount of the judgments under which the land was sold; for, as we have seen, to the extent of these judgments he takes the estate upon which their lien attached.

[4.] This view is consistent with that laid down by this Court, in the ease of Neall vs. Kerrs Hope, (4 Ga. R. 161,) where it was held that a junior mortgagee with notice, gains no preference ; because in the latter case, the lien is created by the contract of a party whose conscience is affected with notice ; in the former, the creditor being unaffected with notice, the lien is created by virtue of law.

[5.] Whether or not, the rights of the purchaser in this case were influenced by notice to him, as to any amount exceeding the judgments, must depend upon the evidence of notice, and so far as we are informed by the record, no such notice appears.

If there were no signature of the mortgagor, Collins, upon the record hook until more than three months had elapsed from the date of the mortgage, we hold that constructive notice cannot properly bo deduced from such a record. The purchaser in such case, can bo held in reason, to have had notice from this record, only of what there appeared, viz : that an instrument was registered, which was incomplete, because lacking signature.

“ It would seem,” says one of the first lawyers of our age, “ that the Courts might hold, without any violation of principle, that a purchaser should not be deemed to have notice of an equitable incumbrance, by the mere registry of it, unless it was duly registered.” Sugden, 470.

Eminent Courts and Judges have so held. Chancellor Kent, for example, says in the case of Frost vs. Beckman, (1 John. Ch. R. 300,) that the purchaser is' not to be charged with [449]*449notice of the contents of the mortgage, any farther than they may be contained in the registry. The purchaser is not bound to attend to the correctness of the registry. The Act, in providing that all persons might have recourse to the registry, intended that as the correct source of information.” The Chancellor goes on to say, that if the rule were otherwise, “ the registry might prove only a snare to the purchaser, and no person could bo safe in his purchase, without hunting out and inspecting the original mortgage, a task of great difficulty.”

The Supreme Court of Pennsylvania holds similar doctrine, in the case of Heister vs. Fortner, (2 Binn. R. 40,) as the Supreme Court of the United States, in Hodgson vs. Butts, (3 Cranch, 155.) And this Court, in the case of Herndon et al. vs. Kimball, (7 Ga. R. 433,) has, in principle, laid down the same rule.

. Though the facts of these cases are not the same with that at bar, yet the principle involved, is the same in all, viz: that -the registry is notice of the tenor and effect of the instrument recorded, only as it appears upon that record.

[6.] We learned in our elementary lessons, that signing, sealing and delivering, were requisites necessary to every good deed.

If, then, this instrument, as it appeared in the record, lacked a signature, (though the signature were

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13 Ga. 443, Counsel Stack Legal Research, https://law.counselstack.com/opinion/shepherd-v-burkhalter-ga-1853.