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

McCaffrey gave Drewrys (plaintiff) a mortgage in exchange for a promise not to sue over delinquent debts, memorialized in a separate agreement that lacked any definite extension of time for repayment and simply let Drewrys forbear as long as McCaffrey stayed current on installment notes. Drewrys recorded its mortgage promptly, while Gabel (defendant), holder of an earlier but unrecorded mortgage from McCaffrey, recorded his own mortgage only afterward. When Drewrys sued to foreclose and named Gabel as a defendant, the trial court found Drewrys a bona fide purchaser entitled to priority over Gabel's earlier lien, and Gabel appealed.