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Hickson Lumber Co. v. Gay Lumber Co.
North Carolina Supreme Court
63 S.E. 1045 (1909)
- Written by Sean Carroll, JD
Facts
James Pou held a mortgage on a property owned by Gay Lumber Company (Gay) (defendant). The mortgage, which was properly recorded, stated it covered not only the subject property, but also all property Gay would acquire during the pendency of the debt. Subsequently, Gay obtained five other tracts of land subject to a mortgage held by Hickson Lumber Company (Hickson) (plaintiff). Gay made these purchases with funds obtained from Hickson. Pou claimed the after-acquired property clause was valid and gave his mortgage priority over Hickson on the five tracts of land. The trial court held that the after-acquired property clause in Pou’s mortgage was valid and enforceable. Hickson appealed.
Rule of Law
Issue
Holding and Reasoning (Brown, J.)
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