In 1903 one Bekkedal purchased certain real property, and used it for a summer home. In 1924 he and his sons organized a corporation with himself as president, and took over the assets of their copartnership. In 1926 the corporation made advances for improvements on the real property of Bekkedal to the extent of nearly $9,000. A year later auditors found that the president had overdrawn his personal account with the corporation by about $33,000, and at their suggestion his account was credited with the value of the property, $20,000, less the amount advanced for improvements, and the assets were marked up $20,000. In 1933 the corporation was adjudged bankrupt, and the trustee in bankruptcy served an order to show cause why the property should not be conveyed to him. The president orally promised to convey, but when the deed was presented to him, he refused to convey on the ground that, between the date of the hearing and the presentation of the deed, a judgment had been rendered against him for double liability on bank stock that he owned. Subsequently he did convey to the trustee. The property was appraised at $7500 by appraisers in the bankruptcy proceeding. The trustee brought this action to quiet title in himself, and to set aside a sheriff's deed made in execution of the judgment. Held, that the plaintiff's prayer be granted, as a vendee's lien is superior to the lien of the subsequent judgment creditor. Lewis v. Wisconsin Banking Commission, 225 Wis. 606, 275 N. W. 429 (1937).
Arthur A. Greene,
VENDOR AND PURCHASER - PRIORITIES AS BETWEEN VENDEE'S LIEN AND INTERVENING JUDGMENT CREDITOR,
Mich. L. Rev.
Available at: https://repository.law.umich.edu/mlr/vol37/iss1/24