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Gabel v. Drewrys Limited, U.S.A., Inc.

Supreme Court of Florida
68 So.2d 372 (1953)


Facts

McCaffrey, a beer distributor, executed a mortgage to Drewrys (plaintiff) in exchange for a forbearance of any legal action by Drewrys to collect on delinquent debts. The parties executed a separate agreement that stated that Drewrys would forebear collection action as long as McCaffrey made timely installment payments under promissory notes. The agreement did not set forth a definite extension of time for payment of the pre-existing debt. Drewrys recorded the mortgage shortly after its execution. Gabel (defendant) was the holder of an unrecorded mortgage from McCaffrey that predated the mortgage to Drewrys. Gabel recorded his mortgage after Drewrys had recorded its mortgage. Drewrys filed suit to foreclose its mortgage and named Gabel as a defendant. The trial court found that Drewrys was a bona fide purchaser. The trial court held that Drewrys’ mortgage took priority over the lien of Gabel’s mortgage and awarded judgment of foreclosure in favor of Drewrys. Gabel appealed.

Rule of Law

Issue

Holding and Reasoning (Drew, J.)

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