United States v. Dailey

749 F. Supp. 218 (1990)

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United States v. Dailey

United States District Court for the District of Arizona
749 F. Supp. 218 (1990)

Facts

Valley Acceptance (Valley) obtained a simple judgment lien against James M. Dailey (defendant), which it recorded on April 26, 1985. On September 19, 1986, Dailey borrowed money from the United States (plaintiff), which was represented by a note providing for immediate repayment in the event of default, to purchase certain real property from the Veterans Administration (VA). As security for the note, Dailey also executed and delivered to the United States a deed of trust between Dailey and the VA, which gave the United States the option to foreclose the deed of trust upon the occurrence of any default by Dailey. The United States subsequently recorded the deed of trust. Dailey defaulted by failing to repay the United States. Accordingly, the United States sued Dailey. The United States moved for summary judgment. Valley argued that its previously recorded judgment lien has priority over the United States’ subsequently recorded interest pursuant to Arizona law. The United States argued that its purchase money mortgage has priority over prior-recorded judgment liens.

Rule of Law

Issue

Holding and Reasoning (Rosenblatt, J.)

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