Shutze v. Credithrift of America, Inc.
Mississippi Supreme Court
607 So. 2d 55 (1992)
The Gentrys secured a 1981 home-equity loan from Credithrift (defendant) with a recorded deed of trust containing a dragnet clause covering all present and future debts; Thomas Shutze (plaintiff) later obtained and perfected a judgment lien against the Gentrys in October 1984, and in 1985 the Gentrys, pursuant to the original dragnet clause, renewed their Credithrift loan and received an additional $2,784.13 advance. After the Gentrys defaulted and Credithrift foreclosed, Credithrift and Shutze litigated over priority to the home's value; the chancery court ruled Credithrift's later 1985 advance had priority over Shutze's earlier-perfected judgment lien, and Shutze appealed.
Whether, under real-estate law, a future advance secured by an underlying interest pursuant to a dragnet clause has priority over a judgment recorded before the advance was made.