Smith v. James A. Merrill, Inc.

Plaintiffs William and Nancy Jo Smith and Ralph Wilkerson appeal from a summary judgment entered in favor of defendants James A. Merrill, Inc., James A. Merrill, Kenneth A. Kirkland, and Michael and Claudia Stoneff on plaintiffs’ complaint for declaratory relief. In granting summary judgment, the trial court determined as a matter of law that the remaining proceeds of a trustee’s sale of real property owned by Ralph and Evon Wilkerson should be distributed to Merrill based on Merrill’s judgment lien against the property. Plaintiffs contend Merrill’s judgment lien never attached to the property because the Wilkersons recorded a homestead declaration on the property before Merrill recorded his abstract of judgment. We conclude Merrill’s judgment lien attached to the property, but issues of fact remain with respect to the amount of that lien due to the prior recording of the Wilkersons’ homestead declaration. Accordingly, we reverse the judgment.

Factual and Procedural Background

The following facts are undisputed. Ralph and Evon Wilkerson owned a home in Alpine which was encumbered by a first deed of trust securing a promissory note. In November 1981, they recorded a…