Monroe v. Lincoln City Employees Credit Union
Monroe v. Lincoln City Employees Credit Union
Opinion of the Court
This is an appeal from a declaratory judgment determining the rights and interests of the parties in
The case was tried on a stipulated set of facts. The plaintiffs, Monroe and Barton, contracted on June 29, 1977, with Rocky Olson and Susan Olson (not parties to this action) for the purchase of property located at 1526 Pawnee, Lincoln, Lancaster County, Nebraska. On July 7, 1977, Lincoln City Employees Credit Union, defendant in this action, filed suit against the Olsons in the municipal court of Lancaster County, and on July 29 following obtained a default judgment in the amount of $3,679.02, together with costs. On August 1, 1977, a transcript of the judgment was filed with the clerk of the District Court for Lancaster County, Nebraska. On or about August 8, 1977, the judgment-debtors, Susan and Rocky Olson, executed a warranty deed transferring the property to the plaintiffs, Monroe and Barton. Defendant, Lincoln City Employees Credit Union, claims a lien on the real estate.
At trial, the court held: “The question presented in this litigation is whether the transcribed judgment is a lien against the subject real estate under Section 25-1504.” That section provides as follows: “The lands and tenements of the debtor within the county where the judgment is entered, shall be bound for the satisfaction thereof only from the day on which such judgments are rendered.” The same rule applies when the transcript from the municipal or county court is transcribed to the District Court. §§ 26-122 and 24-539, R. R. S. 1943. The judgment becomes a lien on real estate owned by thfe debtor within that county.
The plaintiffs contend, and the trial court held, that at the time the judgment was filed in the District Court, the Olsons’ interest had been equitably
The trial court’s reliance on Buford v. Dahlke, supra, is misplaced. That case involved a controversy between the surviving spouse of Ernest R. Dahlke and the administrator of his estate over the proceeds of a certain contract for the sale of real estate owned by husband and wife as joint tenants. The spouse claimed she was entitled to all remaining payments under the contract by reason of her right of survivorship in the realty. This court rejected that claim, holding that the contract to convey equitably converted the interest of the Dahlkes from realty to personalty and severed the joint tenancy. The administrator of the estate was therefore entitled to half the proceeds. This court, Boslaugh, J., said: “* * * if the owner of real estate enters into a contract of sale whereby the purchaser agrees to buy and the owner agrees to sell it and the vendor retains the legal title until the purchase money or some part of it is paid, the ownership of the real estate as such passes to and vests in the purchaser, and that from the date of the contract the vendor holds the legal title as security for a debt as trustee for the purchaser. The interest or estate acquired by the vendee is land and the rights conferred by the contract upon and vested in the vendor are personal property.” That rule has also been applied in risk of loss cases. See McGinley v. Forrest, 107 Neb. 309, 186 N. W. 74. But the doctrine of equitable conversion does not apply for all purposes and in every situation where there is a contract for the purchase of land.
Equitable conversion is merely “a name given to results reached on other grounds, not a fact from which we may reason for all purposes and with respect to the rights of all parties.” Pound, The Prog
We do not know from the record the interest, if any, of the vendor in the real estate at the time the judgment was transcribed to the District Court. The judgment must be reversed and the cause remanded to the District Court for proceedings
Reversed and remanded.
Reference
- Full Case Name
- Larry K. Monroe v. Lincoln City Employees Credit Union
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- Published