196 F.3d 613 (6th Cir. 1999), 98-6369, Hensley v Harbin

Docket Nº:98-6369
Citation:196 F.3d 613
Party Name:Doris W. Hensley, Administratrix of the Estate of Dion Hensley, Charles Hensley, and Mona Hensley, Plaintiffs-Appellants, v. Terry Harbin, Barclay's American Mortgage Corporation, Midland Mortgage Company, Jim L. Harbin and Faye Harbin, and the United States of America, Defendants-Appellees.
Case Date:November 09, 1999
Court:United States Courts of Appeals, Court of Appeals for the Sixth Circuit
 
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Page 613

196 F.3d 613 (6th Cir. 1999)

Doris W. Hensley, Administratrix of the Estate of Dion Hensley, Charles Hensley, and Mona Hensley, Plaintiffs-Appellants,

v.

Terry Harbin, Barclay's American Mortgage Corporation, Midland Mortgage Company, Jim L. Harbin and Faye Harbin, and the United States of America, Defendants-Appellees.

No. 98-6369

United States Court of Appeals, Sixth Circuit

November 9, 1999

Submitted: September 17, 1999

Rehearing and Suggestion for Rehearing En Banc Denied Dec 21, 1999.

Appeal from the United States District Court for the Eastern District of Tennessee at Knoxville, No. 97-00096--R. Leon Jordan, District Judge.

J. Mikel Dixon, Knoxville, Tennessee, for Appellants.

Wade M.Boswell, Knoxville, TN, for Terry Harbin, Barclay's American Mortgage Corp., Jim L. Harbin and Fay Harbin.

W. Tyler Chastain, Bernstein, Stair & McAdams, Knoxville, TN, for Midland Mortgage Co.

David English Carmack, Robert L. Baker, U.S. DEPARTMENT OF JUSTICE, APPELLATE SECTION TAX DIVISION, Washington, D.C., for United States.

Before: BATCHELDER and GILMAN, Circuit Judges; HOOD, District Judge[*].

Page 614

OPINION

RONALD LEE GILMAN, Circuit Judge.

This appeal involves the sole issue of when a judgment lien is perfected under federal law. Two of Dion Hensley's relatives and the administrator of his estate (collectively "the Hensleys") won a $780,000 judgment in state court against Terry Harbin in 1988, and attached his property to satisfy the award. On appeal, the judgment was reversed and remanded as to the issue of damages only. The parties eventually reached a settlement in 1992, and a new judgment was entered for $400,000. In 1990, however, after the monetary award in the first judgment was set aside but before the settlement and entry of the final judgment, the United States filed a $19,805.38 tax lien against Harbin's property. In the present action, the Hensleys bring suit against Harbin and the United States, as well as several of Harbin's other creditors, to establish the priority of the Hensleys' judgment lien and to force the foreclosure of Harbin's property.

The question presented on appeal is whether the Hensleys' judgment lien became perfected when the lien was first entered in 1988 or only when its amount was ultimately fixed in 1992. For the reasons set forth below, we AFFIRM the judgment of the district court that the Hensleys' lien was not perfected until 1992.

I. BACKGROUND

A. Factual background

The facts in this appeal are undisputed. Harbin owns a piece of real property located at 7325 Oxmore Road, in Knox County, Tennessee. The property is subject to several liens. The first such lien is a deed of trust, issued on June 11, 1985, which was secured by a first mortgage in favor of Barclay's American Mortgage Corporation ("Barclay's"). Barclay's has since transferred this lien to Midland Mortgage Company ("Midland").

On April 8, 1988, the Hensleys won a $780,000 civil judgment against...

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