Wede v. Niche Marketing USA, LLC
2010 La. LEXIS 2621
La.2010Background
- Wede obtained a North Carolina money judgment against Whitney, Jr. and Niche Marketing USA, LLC, and sought Louisiana enforcement through a judicial mortgage.
- In St. John the Baptist Parish, the clerk is the recorder of mortgages and conveyances and had a policy to record money judgments in the mortgage records unless instructed otherwise.
- The clerk processed Wede’s judgment as a conveyance (CO) rather than a mortgage (MO) in the parish’s electronic records, obscuring it from mortgage searches.
- Whitneys conveyed the property to the Jameses in 2007 without satisfying the Wede judgment, and the conveyance record did not reveal the judgment.
- Wede later discovered the erroneous CO designation and sought to enforce the judgment as a judicial mortgage against the Jameses on seizure grounds.
- The trial court held the error was indexing/recordation but favored Wede; the court of appeal reversed, and this Court granted review to decide whether the judgment could operate as a judicial mortgage under La. Civ. Code arts. 3338–3339.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether a money judgment improperly recorded as a conveyance affects third parties as a judicial mortgage | Wede argues Article 3338 requires proper mortgage recordation to bind third parties | Jameses contend the misclassification prevents any mortgage effect | No; recordation must be in mortgage records to affect third parties |
| What governs whether a judicial mortgage exists when recorder’s error occurs | Wede asserts Article 3347 allows effect of recordation despite recorder’s error | Jameses rely on Article 3338 and progression of registry law to bar mortgage effect | Article 3338 governs; error cannot create mortgage where not in mortgage records |
| Role of public-records doctrine versus recorder’s intent in this context | Wede emphasizes protection by public records doctrine against third-party reliance | Jameses rely on public-records integrity and third-party reliance in records | Public records doctrine favors third-party purchaser; judgment not enforceable as mortgage against Jameses |
Key Cases Cited
- McDuffie v. Walker, 125 La. 152, 51 So. 100 (La. 1909) (unrecorded contract generally ineffective against third persons; registry principles)
- Kinnebrew v. Tri-Con Production Corp., 244 La. 879, 154 So.2d 433 (La. 1963) (timing of recordation; focus on when inscription became effective)
- Lewis v. Klotz, 39 La.Ann. 259, 1 So. 539 (La. 1887) (redundant recordation practices; leases and publication nuances)
- Dumas v. State, Department of Culture, Recreation & Tourism, 828 So.2d 530 (La. 2002) (interpretation of clear and unambiguous statutes; codal interpretation)