WEIMER, Justice.
This court granted plaintiff's writ application to determine whether an enforceable judicial mortgage existed when the clerk of court received a money judgment for recordation, but admittedly processed the judgment as a conveyance document rather than as a mortgage document within the clerk's computerized immovable property records system. Plaintiff sought to enforce the judgment against defendant purchasers who bought immovable property consisting of a home from the judgment debtor. The defendant purchasers bought this immovable property after the judgment was processed as a conveyance document, rather than as a mortgage document.
On August 19, 2005, a North Carolina court awarded Hans Wede a money judgment against Rodney Whitney, Jr. and Niche Marketing USA, LLC. Later, Mr. Wede filed suit in the Fortieth Judicial District Court for St. John the Baptist Parish to make the judgment executory in Louisiana. On December 8, 2005, the district court entered its judgment, and the North Carolina court judgment was made executory.
In St. John the Baptist Parish, the clerk of court is also the recorder of conveyances and of mortgages.
Following that policy, on December 8, 2005, a deputy clerk received Mr. Wede's judgment from the district court, made a certified copy of the judgment, and delivered the copy to the recordation department. The recordation department of the clerk's office no longer maintains physical books for recording mortgage and conveyance documents; the records are now kept electronically. During the relevant time period, the records were kept electronically. To record a document electronically, personnel assign and place an instrument number upon the physical document, and scan it. Then personnel select within the office's computer system between the options of "MO" for designating the scanned image as a mortgage document and "CO" for designating the image as a conveyance document.
When Mr. Wede's judgment against Mr. Whitney was processed, however, instead of selecting "MO" on the computer screen, the clerk's office identified the judgment by "CO" as a conveyance document.
The computer system is the sole portal for accessing immovable property records in the parish. Prior to adopting this computer system, clerk's personnel would create an index for each set of conveyance and mortgage records. Now, indices can be created based upon how documents are identified within the computer system (as "MO" or "CO").
Later, an attorney for Mr. Wede sought to enforce the judgment against Mr. Whitney, but the attorney then learned the Whitneys had sold the property to the Jameses. It was also then learned by Mr. Wede's attorney that Mr. Wede's judgment had been identified as a conveyance document, rather than a mortgage document, in the computer recordation system.
On May 3, 2007, another attorney, Lloyd LeBlanc, approached the chief deputy clerk in charge of the recordation department, and inquired about the recordation of Mr. Wede's judgment and its apparent designation as a conveyance record.
Asserting that a judicial mortgage existed notwithstanding the original, mistaken designation of the judgment as a conveyance record, Mr. Wede sought enforcement. In the district court, Mr. Wede filed a motion asking for authority to seize the property the Jameses had bought from the Whitneys. Mr. Wede filed his motion naming the Jameses as "defendants-in-rule." The Jameses appeared and opposed the motion.
The trial court granted Mr. Wede's motion, and in well-written reasons, found that the error of the clerk's office (selecting "CO" instead of "MO" in the computer system) was one of indexing. While noting that the Jameses are entitled to rely upon the public records, the trial court pointed out that the indices are not part of the public record, and ruled that erroneous indexing does not affect the validity of recordation. According to the trial court's ruling, Mr. Wede could proceed with seizure of the property from the Jameses.
The Jameses appealed, and the court of appeal reversed. The appellate court disagreed that the error by the clerk's office was one of indexing. The appellate court reasoned that the recorder had erroneously placed Mr. Wede's judgment into the conveyance records, and the money judgment could not therefore be enforced as a mortgage.
Mr. Wede applied to this court for a writ of review, and this court decided to consider the matter. See Wede v. Niche Marketing USA, LLC, 2010-0243 (La.4/16/10), 31 So.3d 1069.
In the record before us, there is no evidence that the judgment creditor, Mr. Wede, requested his money judgment be
This case, therefore, presents the vexing question of whether the judgment creditor or the third-party purchaser should prevail when both invoke the protections of the public records and both appear to have satisfied the requirements for protection.
Deciding how to resolve this matter is made difficult because both the judgment creditor and the purchasers point to the same event, i.e., an admitted mistake by the recorder/clerk, as a reason for their protection. While both parties may be victims of a mistake,
We begin, therefore, with the words of the codal provisions. See Dumas v. State, Department of Culture, Recreation & Tourism, 2002-0563, p. 11 (La.10/15/02), 828 So.2d 530, 536. In this action to enforce a judicial mortgage, it is worthy to recall that LSA-C.C. art. 3299 describes the effect of a judicial mortgage: "A judicial mortgage secures a judgment for the payment of money." Turning next to LSA-C.C. art. 3300, which provides that "[a] judicial mortgage is created by filing a judgment with the recorder of mortgages," it is implicit in this article that a judicial mortgage owes its very existence to being in the mortgage records. Similarly, from this same article it follows that if a party must present a judgment
Preferring a literal view of the law, however, we do not have to rely upon these obvious inferences from Article 3300 to ascertain how a judicial mortgage might affect the rights of third parties. That article does not directly address the rights of third parties, but LSA-C.C. art. 3338 does:
Clearly, a judicial mortgage is an "instrument that ... establishes a real right in or over an immovable." LSA-C.C. art. 3338. Notwithstanding that this article is directed to the rights of third parties, Mr. Wede, the judgment creditor, argues that another article, LSA-C.C. art. 3347, is
The crux of the judgment creditor's argument is that because the clerk's office admittedly made an error in selecting "CO" instead of "MO" when processing his judgment, that LSA-C.C. art. 3347 nevertheless gives him a judicial mortgage enforceable against the Jameses.
However, this argument figuratively puts the cart before the horse. Twice, Article 3347 speaks to "when" a document gains the effect of recordation. Not at all, however, does Article 3347 speak to the threshold matter of "where" a document must be recorded to gain that effect.
In Article 3338, therefore, there is an emphatic, clear, and absolute imperative that a judicial mortgage is "without effect as to a third person unless the instrument is registered by recording it in the appropriate mortgage ... records." To adopt the judgment creditor's argument that Article 3347 trumps Article 3338 would require this court to interpret Article 3347 to mean that the clerk of court's acceptance of the judgment conferred, not just the effects of recordation, but also "the effect of recordation within the mortgage records." The civilian tradition requires this court to avoid adding the underlined words, or any other words not enacted by the legislature, into Article 3347. See LSA-C.C. art. 9.
Thus, because the legislature left intact Article 3320 and the principles espoused in these revision comments when recently revising the law of recordation, we are bound to continue to recognize these principles. Cf. LSA-C.C. art. 8 ("Laws are repealed, either entirely or partially, by other laws. A repeal may be express or implied. It is express when it is literally declared by a subsequent law. It is implied when the new law contains provisions that are contrary to, or irreconcilable with, those of the former law....").
The judgment creditor also argues that the jurisprudence counsels for enforcing a
For example, the judgment creditor first relies upon Kinnebrew v. Tri-Con Production Corp., 244 La. 879, 884, 154 So.2d 433 (1963). But Kinnebrew involved only a question of when, not of where, recordation had occurred: "the only legal issue properly before the Court of Appeal (and now before us) was whether the actual inscription of ... encumbrances became effective from the time of the filing with the Clerk of Court." Id. at 435. As noted earlier in our analysis of Articles 3338 and 3347, the present case does not turn upon a question of timing, so much as it turns upon where a judgment was recorded. In this matter, Article 3338 clearly indicates the judgment has no efficacy unless it is in the mortgage records. Mr. Wede's reliance upon Kinnebrew is misplaced.
Of the other authorities cited, only one case arguably examines "where" a document should be recorded in order to have effect against third parties. The judgment creditor cites—without elaboration—the ancient case of Lewis v. Klotz, 39 La.Ann. 259, 268, 1 So. 539, 542 (1887), in which this court stated:
It appears that in Lewis this court analyzed a practice of redundant recordation, and gave effect when a lease document was recorded in only one place (a book specifically for leases) though a third party would expect to also find the lease in a conveyance book. But in the 123 years since this court decided Lewis, obviously much in the law of recordation has changed (e.g., Book III, Title XXII-A of the current civil code makes no provision for a lease book). Also, Lewis does not concern recordation of a judgment, and whether a judgment should be given effect as a judicial mortgage. For these reasons, we find that Lewis is so different from the case at hand as to be of no assistance in its resolution.
Thus, we return to the plain language of Article 3338. In the words of that article, Mr. Wede's money judgment is purportedly "[a]n instrument that modifies, terminates, or transfers the rights created or evidenced by the instruments" that "establishes a real right in or over an immovable." LSA-C.C. art. 3338(4) and (1). Of course, as a money judgment, on its face it said nothing about establishing or transferring any real rights in Mr. Whitney's immovable property.
We find that owing to its entry in the parish's computer recordation system as "CO" for conveyance rather than "MO" for mortgage, Mr. Wede's judgment could not operate as a judicial mortgage against the
On the particular facts before us, the designation of the money judgment with "CO" as a conveyance document and the unrefuted testimony that a user of the parish computer system who searched only for mortgages would not find the judgment, are sufficient reasons for us to determine that the judgment was not "registered by recording it in the appropriate mortgage ... records" for purposes of Article 3338. The Jameses purchased the property in question from the Whitneys unencumbered by a judicial mortgage.
The judgment of the court of appeal is hereby affirmed.
It should be noted that this court expresses no view as to the legal consequences of this testimony or of any other testimony in this case beyond the narrow legal issue before us.
Section 9 of 2005 La. Acts, No. 169, effective July 1, 2006.
We observe within this transitional language that if an instrument were effective under the former law of registry, the current law does not adversely impact its effectiveness.
In the instant case, the parties argued the merits of their positions under current law. The trial court and court of appeal adjudicated the parties' dispute under current law. We have likewise applied current law, being neither urged nor finding otherwise a reason to apply pre-revision law. See, e.g., Estate of Patrick v. Board of Sup'rs, Louisiana State University, 2002-2570, 836 So.2d 1 (La. 11/22/02) (declining to reach issue not raised "in a timely and proper manner."). In our view, however, we discern no difference in the result, whether current or pre-revision law is applied. See LSA-C.C. art. 3320, revision comment (d) ("a mortgage recorded in the conveyance records, or a sale recorded in the mortgage records, is without effect as to third persons."). As discussed further in the body of this opinion, the quoted comment was made concurrently with revisions to the law of registry in the year 1992, a time well before the relevant events in this case.
The clerk's computer recordation system, by using the designations "MO" for "mortgage" and "CO" for "conveyance" appears to have been designed to comply with LSA-R.S. 44:185 and with numerous other statutes designating whether an instrument must be recorded in mortgage records, in conveyance records, or in both. See, e.g., LSA-R.S. 3:210(B) (agricultural credit corporations may "execute mortgages of realty" which must be "recorded in the recorder's office of the parish in which the mortgaged property is located, in the mortgage records"); LSA-C.C. art. 467 ("The owner of an immovable may declare that machinery, appliances, and equipment owned by him and placed on the immovable, other than his private residence, for its service and improvement are deemed to be its component parts. The declaration shall be filed for registry in the conveyance records of the parish in which the immovable is located."); and LSA-C.C. art. 357 ("If the prayer for continuing or permanent tutorship be granted, the decree shall be recorded in the conveyance and mortgage records of the parish of the minor's domicile, and of any future domicile, and in such other parishes as may be deemed expedient.").