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PaperclipPerfector  5mo ago (text post)   3140 thread views

Friday Fun Thread for March 7, 2025

Be advised: this thread is not for serious in-depth discussion of weighty topics (we have a link for that), this thread is not for anything Culture War related. This thread is for Fun. You got jokes? Share 'em. You got silly questions? Ask 'em.

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Court opinion:

  • A person lives on a property that sits directly on top of the line between Trimble County and Carroll County in Kentucky. Most of the house is in Carroll County, but the driveway and part of the house are in Trimble County. The property's deed, and two mortgages on the property, are recorded with the Carroll County clerk, and the property tax is paid to Carroll County. However, the person's driver license states that he resides in Trimble County, and he has voted in Trimble County in the four most recent elections.

  • The person buys on credit, registers, and titles a semi-truck in Trimble County. Accordingly, the creditor files a lien on the truck with the Trimble County clerk. However, when the person files for bankruptcy, he argues in bankruptcy court: he actually resides in Carroll County; since the lien was not filed in his county of residence, it is invalid under state law; and, therefore, the lien must be "avoided" (deleted) in the federal bankruptcy.

  • The bankruptcy judge agrees with the debtor and avoids the lien. A slight majority of the property is in Carroll County, so the deed was recorded in Carroll County, and that is conclusive proof of the debtor's county of residence under state law. State law incorporates "a policy of certainty in the recording of mortgages on both real and personal property", and allowing a person to pick and choose which of two counties is his county of residence would frustrate that policy. The debtor cannot be faulted for giving the wrong county of residence in the credit application, as (1) the application was only attested, not sworn, before a notary, and (2), if the application was not sworn, then under state law it was the creditor's responsibility to check the county of residence before filing the lien.

The debtor cannot be faulted for giving the wrong county of residence in the credit application, as (1) the application was only attested, not sworn, before a notary, and (2), if the application was not sworn, then under state law it was the creditor's responsibility to check the county of residence before filing the lien.

Would this be unjust enrichment in other states/if it occurred slightly differently?

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