Kahn v. Berman

William and John Kahn (plaintiffs) won a Nevada judgment of over $1.2 million against William Berman and his wife (defendants) in July 1984 and recorded an abstract of it in San Mateo County, California, the next day. A California court didn't enter its own judgment based on the Nevada judgment until March 1985, and the Kahns didn't serve notice of that California judgment on the Bermans until September 1985. In February 1986 the Kahns obtained a writ of execution, which the sheriff levied in March 1986, and they then moved to sell the property. The Bermans recorded a homestead declaration in April 1986, and the Kahns recorded an abstract of the California judgment in May 1986. The trial court found the March 1986 execution lien had priority over the Bermans' later homestead declaration, and also found the Bermans weren't entitled to a homestead exemption on a home it valued at $450,000. The Bermans appealed.