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The New England Mortgage Security Company et al. v. Ober & Sons Company

Supreme Court of Georgia1890-01-20
84 Ga. 294

Summary

Holding. The court reversed the lower court's judgment and held that a judgment lien obtained before a defectively recorded mortgage takes precedence over the mortgage lien, even though the judgment was rendered after the mortgage was made, because the improper probate and recording deprived the mortgage of constructive notice effect against subsequent creditors.

This case involved a dispute over funds from a sheriff's sale of mortgaged property. Two mortgages on the property were recorded, but the recording process was defective because the witnesses to the mortgages were not legally authorized officers, and the probate affidavit was insufficient under established law. The plaintiffs held a common law judgment obtained before the property sale, and they sought priority over the mortgage lien to the disputed funds.

The court examined whether a judgment lien created after a defectively recorded mortgage could take priority over that mortgage. Under the applicable statute, mortgages recorded without proper attestation and probate do not provide constructive notice to subsequent creditors and purchasers. The court found that the mortgage here was improperly probated and therefore not properly recorded as required by law. Because the judgment lien was created before the mortgage was properly recorded, it held priority despite being junior in date to the mortgage itself.

Summary generated by law.co from the public-domain opinion. The opinion text itself is public domain.

Key issues

  • Whether defective probate and recording of a mortgage defeats its priority over subsequently created judgment liens
  • Whether a judgment creditor with a lien created after a mortgage's execution can have priority if the mortgage was improperly recorded
  • What constitutes sufficient probate and attestation for mortgage recording

Procedural posture

The case was an appeal from a lower court judgment that awarded priority to the mortgage lien over the judgment lien in a contest for funds held by the sheriff from a foreclosure sale.

Authorities cited

No cited authorities resolved to law.co cases yet.

Opinion

majority opinion

Blandford, Justice.

This was a contest for money in the hands of the sheriff arising from the sale of certain land under certain mortgage fi. fas. in favor of the defendants in error. The plaintiffs in error claimed the fund under a common law judgment, which judgment was obtained before the sale of the land. The contention here was that the mortgages were improperly recorded, having been witnessed by two persons, neither of whom was an officer authorized by law to witness mortgages, and having been admitted to record upon the affidavit of one of these witnesses, in which he stated simply that he saw the mortgagor sign the mortgage, that he himself signed the same as a witness and saw the other Avitness sign the same.

It is clear to us that these mortgages were not prop erly probated so as to admit them to record. In the case of Stanley v. Suggs, 23 Ga. 137, it was held by this court that where the attesting witness to a deed of mortgage swore that he was a subscribing witness to the same, and saw the maker sigh it, and also saw the other subscribing witness sign it, the probate was insufficient to admit the mortgage to record. And in that case the case of Rushin v. Shields et ad., 11 Ga. 636, was cited. In the case of Andrews v. Mathews, 59 Ga. 466, this court held that a judgment junior in date to a mortgage illegally recorded for want of probate, but founded on a debt antecedent to the date of the mortgage, has priority of lien to the mortgage, and the purchaser under the fi.fa. issued upon such judgment will acquire good title against the mortgage, though both the j udgment creditor and the purchaser had actual notice of the defectively recorded mortgage. In Richards & Bro. v. Myers & Marcus, 63 Ga. 762, it was held that a judgment rendered before a mortgage which is not recorded in time has a superior lien upon the property, though at the time of the rendition of the judgment the mortgage has been foreclosed and the mortgage,/?./a. levied. The lien of a mortgage is in the contract, and not in the judgment of foreclosure. The code, §1959, declares that a mortgage recorded in an improper office, or without due attestation or probate, or so defectively recorded as not to give notice to a prudent inquirer, shall not be held notice to subsequent bona fide purchasers or younger liens. Section 1957 declares that “Mortgages not recorded within the time required remain valid as against the mortgagor, but are postponed to all other liens created or obtained, or purchases made prior to the actual record of the mortgage. If, however, the younger lien is created by contract, and the party receiving it has notice of the prior unrecorded mortgage, or the purchaser has the like notice, then the lien of the older mortgage shall he held good against them.”

As it appears to us, this mortgage was improperly probated, and therefore was not properly recorded within the time required by law. We think that §1957, as above quoted, requires us to hold that the judgment lien of the plaintiffs in error, although acquired since the making of the mortgage and since the improper reeoi’d thereof, takes • precedence of the mortgage lien, and that the judgment of the court below holding the contrary was erroneous. Judgment reversed,