Vaughn v. Schmalsle

10 Mont. 186
CourtMontana Supreme Court
DecidedJuly 15, 1890
StatusPublished
Cited by13 cases

This text of 10 Mont. 186 (Vaughn v. Schmalsle) is published on Counsel Stack Legal Research, covering Montana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Vaughn v. Schmalsle, 10 Mont. 186 (Mo. 1890).

Opinion

Harwood, J.

In this appeal two questions of law are to be determined: First, a question of priority and relative legal effect of a judgment lien on real estate, and title acquired at execution sale thereunder, as against a mortgage executed and delivered prior to docketing of the judgment, but not recorded until after the judgment was docketed and levy made under execution. Second, a question as to the sufficiency of description of a portion of the real estate mentioned in the mortgage.

These questions will be considered in the order stated. This appeal is from the judgment of the trial court, and we find in the judgment roll an exception to the conclusions of law found by the court, on the ground that the same are not supported by the facts as found by the court. The facts bearing upon the first point of controversy as found by the court are as follows: March 1, 1886, plaintiff loaned to J. F. Schmalsle seven hundred dollars, payable twelve months after date, with interest at the rate of twenty-four per cent per annum, for which said J. F. Schmalsle made and delivered to plaintiff a promissory note, and a mortgage to secure the same, principal and interest, and twenty-five dollars attorney fees, on certain described lots of land situate in Miles City, county of Custer, which mortgage [193]*193was filed for record in the office of the county clerk and recorder of said county, April 5, 1886. On the eleventh day of March, 1886, judgment was rendered and docketed against said mortgagor in the District Court in and for said county, for the recovery of the sum of fifteen hundred dollars, in favor of "William F. Schmalsle, one of the defendants in this action; that execution was duly issued on said judgment on March 19, 1886, under which execution the sheriff levied on the same real estate mentioned in said mortgage, and thereafter, on the ninth day of April, 1886, sold said real estate under said levy to William F. Schmalsle for eleven hundred dollars; that when such purchase was made the purchaser, William F. Schmalsle, had actual notice of the existence of the plaintiff’s mortgage, as well as constructive notice by the record thereof; that on the ninth day of October, 1886, the sheriff executed to William F. Schmalsle a deed, conveying to him said property so sold under said execution, which deed was filed for record October 20, 1886. Upon this state of facts the court found, as a conclusion of law, that the judgment lien was paramount to the mortgage, and that the mortgage could not be “ enforced against said property-so levied upon to the exclusion of the said judgment, or in» priority thereto.” So holding, the court denied the plaintiff s, decree of foreclosure of her mortgage on said premises, and rendered judgment against her in favor of defendants, William; F. Schmalsle and Nelson A. Miles, from which judgment, plaintiff appealed.

The question involved herein as to the relative force of a< judgment lien, and a mortgage made and delivered prior to; docketing of the judgment, but not recorded until after such.! docketing and levy of execution, must be solved by a consideration of the statute relating to the judgment lien and execution, and the statute providing for the conveyance of real estate or interests therein, and the effect of recording such conveyances or withholding the same from record. The statute fixing the judgment lien is found in section 307 of the Code of Civil Procedure, which provides: “Immediately after filing a judgment roll the clerk shall make proper entries of the judgment, under appropriate heads, in the docket kept by him; and from the time the judgment is docketed it shall become a lien [194]*194upon the real property of the judgment debtor, not exempt from execution, in the county, owned by him at the time, or which he may afterward acquire, until said lien expires. The lien shall continue for six years, unless the judgment be previously satisfied.” The judgment lien here established by statute takes effect upon “ the real property of the judgment debtor not exempt from execution, in the county, owned by Mm, at the time, or thereafter acquired.” So in section 313 of the Code of Civil Procedure, where the execution is provided for, the sheriff is required, first, to satisfy the judgment out of the personal property of the debtor; or “if sufficient personal property cannot be found, then out of his real property; or if the judgment be a lien upon real property, then out of the real property belonging to him on the day when judgment was docketed, or at any time thereafter.”

In Rodgers v. Bonner, 45 N. Y. 379, the court says: “A judgment is not a specific lien on any particular real estate of the judgment debtor, but a general lien upon all his real estate, •subject to all prior liens, either legal or equitable, irrespective •;of any knowledge of the judgment creditor as to the existence of such liens.” (See, also, Independent School District v. Werner, 43 Iowa, 643.) In the case of Conrad v. Atlantic Ins. Co. 1 Peters, 442, Mr. Justice Story, announcing the decision of the court, says: “Now it is not understood that a general lien by judgment on land constitutes, per se, a property or right in the land itself. It only confers a right to levy on the same to the «exclusion of other adverse interests subsequent to the judgment; and when the levy is actually made on the same, the title of the creditor for this purpose relates back to the time of his judgment, so as to cut out intermediate encumbrances.”

In Brown v. Pierce, 7 Wall. 205, Mr. Justice Clifford, speaking for the court, declares the extent and effect of a judgment lien as follows: “ Judgments were not liens at common law. .... Different regulations, however, prevailed in different States, and in some neither a judgment nor a decree for the payment of money, except in cases of attachment or mesne process, created any preference in favor of the creditor, until the execution was issued and .had been levied on the land. Where the lien is recognized, it confers a right to levy on the [195]*195land to the exclusion of other adverse interests acquired subse- • quently to the judgment; but the lien constitutes no property or right in the land itself. .... Express decision of this court is that the lien of a judgment constitutes no property in the land; that it is merely a general lien, securing a preference over subsequently acquired interests in the property; but the settled rule in chancery is that a general lien is controlled in such courts so as to protect the rights of those who were previously entitled to an equitable interest in the lands, or in the proceeds thereof. Specific liens stand on a different footing; but it is well settled that a judgment creates only a general lien, and that the judgment creditor acquires thereby no higher or better right to the property or assets of the debtor than the debtor himself had when the judgment was rendered, unless he can show some fraud or collusion to impair his rights. Correct statement of the rule is that the lien of a judgment creates a preference over subsequently acquired rights, but in equity it does not attach to the mere legal title to the land as existing in the defendant at its rendition, to the exclusion of a prior equitable title in a third person. Guided by these considerations, the court of chancery will protect the equitable rights of third persons against the legal lien, and will limit that lien to the actual interest which the judgment debtor had in the estate at the time the judgment was rendered.” (In re Howe, 1 Paige, 125; 19 Am. Dec. 395; Ells v.

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Bluebook (online)
10 Mont. 186, Counsel Stack Legal Research, https://law.counselstack.com/opinion/vaughn-v-schmalsle-mont-1890.