708 S.E.2d 821
S.C. Ct. App.2011Background
- Davis obtained a judgment against Arnold Bryant for $5,205.46 on February 12, 2001.
- Bryants purchased the property at 10 20th Street, Greer, SC on April 27, 2001 with a Central Carolina Bank loan; SunTrust is the bank’s successor.
- The mortgage and note to Central Carolina Bank were executed April 27, 2001 and recorded May 1, 2001 securing the Bryant's promissory obligation.
- Spartanburg County Tax Collector sold the property at a tax sale on November 5, 2006 to Equifunding for nonpayment of 2005 taxes; overage from the sale totaled $8,832.87.
- Davis filed an answer denying SunTrust's priority; SunTrust sought the entire tax sale overage, arguing its purchase money mortgage should trump Davis's lien.
- The master-in-equity concluded SunTrust's purchase money mortgage was not entitled to priority against the judgment lien but, due to joint tenancy ownership, the overage should be split; SunTrust appealed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether SunTrust’s purchase money mortgage outranks Davis’s judgment lien for tax sale proceeds | SunTrust asserts priority as a purchase money mortgage | Davis contends lien priority over proceeds remains despite mortgage | SunTrust has priority; SunTrust entitled to entire overage |
Key Cases Cited
- Hursey v. Hursey, 284 S.C. 323, 326 S.E.2d 178 (Ct.App. 1985) (purchase money mortgage priority; secures the mortgagor's interest)
- South Carolina Federal Sav. Bank v. San-A-Bel Corp., 307 S.C. 76, 413 S.E.2d 852 (Ct.App. 1992) (rationale for priority of purchase money mortgage)
- Knapp v. Victory Corp., 279 S.C. 80, 302 S.E.2d 330 (1983) (purchase money mortgage priority considerations)
- Twin City Power Co. v. Savannah River Elec. Co., 163 S.C. 438, 161 S.E. 750 (1930) (earlier authority on liens and priority)
- FCX, Inc. v. Long Meadow Farms, Inc., 269 S.C. 202, 237 S.E.2d 50 (1977) (equitable considerations in lien priorities)