National Bank of Georgia v. Morris-Weathers Co.

• Decision Date: 06 January 1982
• Docket Number: MORRIS-WEATHERS,No. 37609,37609
• Citation: 248 Ga. 798,286 S.E.2d 17
• Parties: The NATIONAL BANK OF GEORGIA +v.COMPANY.
• Court: Georgia Supreme Court

Page 17

286 S.E.2d 17

248 Ga. 798

The NATIONAL BANK OF GEORGIA +v. MORRIS-WEATHERS COMPANY.

No. 37609.

Supreme Court of Georgia.

Jan. 6, 1982.

Rehearing Denied Jan. 27, 1982.

Charles E. Leonard, Atlanta, for The National Bank of Georgia.

Barbara Harris, Asst. U. S. Atty., William L. Harper, U. S. Atty., Atlanta, Alton T. Milam, Austell, Louis F. Ricciuti, Atlanta, for Morris-Weathers Co.

CLARKE, Justice.

This court granted certiorari to consider the opinion of the Court of Appeals in Morris-Weathers Co. v. Decatur Federal Savings & Loan Assoc., 158 Ga.App. 177, 279 S.E.2d 482 (1981). The single issue before us is whether the Court of Appeals erred in holding that Code Ann. § 110-515 makes the date of recordation of a judgment on the general execution docket the single date and sole criterion for measuring priorities between competing judgment lien holders and the sole criterion for determining the effect of a judgment on the title to real property.

Appellant Morris-Weathers Company, E. M. Wilson, and the National Bank of Georgia all obtained judgments against Charles M. White in a December, 1975, term of the State Court of DeKalb County, Georgia. Morris-Weathers obtained its judgment on December 10, and the fi fa thereto was recorded on the general execution docket on December 11. Applicant for certiorari, NBG, obtained its judgment December 22 and E. M. Wilson obtained his judgment December 23. Both the NBG judgment and the Wilson judgment were entered on the GED on January 6, 1976. Charles White filed for bankruptcy in 1976.

At the time of the recordation of the three judgments in question, White was the owner of a piece of real property subject to a first lien held by Decatur Federal Savings and Loan Association. White's trustee in bankruptcy abandoned the property, and Decatur Federal foreclosed. The proceeds were sufficient to repay Decatur Federal in full. The sale generated $17,054.28 over and above Decatur Federal's interest. Decatur Federal filed an interpleader, depositing the excess into the registry of the court. NBG, Wilson and Morris-Weathers were three of the original defendants in the interpleader, competing for the excess funds. The trial court held that under Code Ann. § 110-505, they were deemed to be of equal seniority, since the three judgments were obtained during the same term of court. Further, since all three judgments were recorded as required by Code Ann. § 110-515, the three judgment holders would take pro rata.

Code Ann. § 110-505 provides that all judgments signed on verdicts rendered at the same term of court shall be considered of equal date. Code Ann. § 110-515 provides that no judgment, decree, or order or any writ of fieri facias issued pursuant thereto shall become a lien upon the title to real property until the judgment, decree, order or fi. fa. is recorded in the office of the clerk of the superior court where the land is located and entered in the indexes to the applicable records. Another section, § 110-507, provides that all judgments obtained in the state shall be of equal dignity and shall bind all property of the defendant from the date of judgment except as otherwise provided by the Code.

The Court of Appeals found no Georgia cases addressing the precise point before us. Neither have we. The United States District Court for the Middle District of Georgia has, however, considered a similar problem in In the Matter of Tinsley, 421 F.Supp. 1007 (M.D.Ga.1976). The question in that case was whether under Georgia law a creditor who records an execution on a judgment against a bankrupt after it is affirmed on appeal acquires a lien as of the date of the trial court judgment or as of the date of...