Blackwell v. Lurie

943 P.2d 1318, 284 Mont. 351, 54 State Rptr. 916, 1997 Mont. LEXIS 190
CourtMontana Supreme Court
DecidedSeptember 4, 1997
Docket97-206
StatusPublished
Cited by5 cases

This text of 943 P.2d 1318 (Blackwell v. Lurie) is published on Counsel Stack Legal Research, covering Montana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Blackwell v. Lurie, 943 P.2d 1318, 284 Mont. 351, 54 State Rptr. 916, 1997 Mont. LEXIS 190 (Mo. 1997).

Opinion

JUSTICE REGNIER

delivered the Opinion of the Court.

This is an appeal by Ronald U. Lurie from the Gallatin County District Court’s March 3, 1997, memorandum and order denying his motions to compel the release of a foreign judgment against him filed by Robert J. Blackwell. We affirm and remand.

The issues on appeal are:

1. Did the District Corut err in upholding the Bankruptcy Court’s determination that Lurie was unable to close as a matter of law and that the release filed by Lurie on October 22, 1996, did not comply with § 25-9-311, MCA, and therefore was unenforceable?

*353 2. Did the District Court err in holding that Blackwell had conformed with the requirements of § 25-9-504, MCA?

FACTUAL BACKGROUND

On November 9,1994, Robert J. Blackwell filed a foreign judgment and affidavit in support of filing foreign judgment in the Eighteenth Judicial District Court, Gallatin County. The judgment originated from a Chapter 11 bankruptcy proceeding in the United States Bankruptcy Court, Eastern District of Missouri (the Bankruptcy Court), Case No. 92-42218-293. Blackwell, as the liquidating trustee for the Popkin & Stern Liquidating Trust, filed an adversary action against Ronald U. Lurie in the Chapter 11 proceeding. On October 20, 1996, the Bankruptcy Court entered a judgment in favor of Blackwell and against Lurie in the amount of $1,121,743. The judgment was entitled “judgment in favor of plaintiff, liquidating trustee, and against defendant Ronald U. Lurie on complaint to recover deficiency pursuant to 11 U.S.C. § 723.”

Also, on November 9, 1994, an execution was issued and property was seized from the Lurie home by the Gallatin County Sheriff pursuant to the writ of execution.

Blackwell, the Luries, and other interested parties entered into negotiations to settle all claims and disputes arising from the Chapter 11 proceeding. These negotiations resulted in three Global Settlement Agreements (agreements): one involving Ronald Lurie, one involving Nancy Lurie, and one involving their sons, Michael and Ryan. The Bankruptcy Court approved the agreements on October 19, 1995. On October 21, 1995, the Bankruptcy Court entered an order extending the closing date of the agreements from November 18, 1995, to December 13, 1995.

On December 15, 1995, the Bankruptcy Court held a show cause hearing to determine whether the Luries were capable of closing in accordance with the terms and conditions of the agreements. On January 18, 1996, the Bankruptcy Court issued its findings of fact, conclusions of law, and order on show cause order. The Bankruptcy Court found, as a matter of law, that the Luries were unable to close the agreements on November 18,1995, and December 13,1995. The Luries did not appeal the Bankruptcy Court’s findings, conclusions, and order.

In the Bankruptcy Court, two adversary proceedings involving the fraudulent transfer of assets proceeded to trial against the Luries. In these proceedings, the Luries moved to dismiss Blackwell’s claims *354 based on the release language in the agreements. On April 16, 1996, the Bankruptcy Court ruled against the Luries on their motion, stating that the agreements are unenforceable as releases.

On October 22,1996, Lurie filed a “release” in the Gallatin County District Court. Attached to the filed “release” were the three agreements dated August 30, 1995, August 31, 1995, and September 13, 1995, and designated Release A, Release B, and Release C, respectively. As stated above, the sole purpose of the agreements was to compromise and settle all claims arising in the bankruptcy proceeding between Blackwell and the Luries. The agreements were signed by Blackwell in his capacity as Liquidating Trustee of the Popkin & Stern Liquidating Trust. The clerk of court who filed the “release” did not release the foreign judgment because the agreements were not signed by Lurie, nor was there any documentation from Blackwell satisfying the judgment, nor was there an order from the court.

On November 18,1996, Lurie filed the first of multiple motions to compel, requesting that the District Court of Gallatin County order that the foreign judgment be fully released as in compliance with § 25-9-311, MCA. Since Lurie only appeals the District Court’s determinations on the motions filed on November 18,1996, and December 3, 1996, we set forth the background of these motions as they are relevant to this Court’s discussion.

The essence of Lime’s first motion is that he executed the three agreements, all of which became effective on November 18,1995, the date first set for closing by the Bankruptcy Court. Lurie claimed that the agreements did not require that a closing actually take place for them to be effective. Blackwell argued that because there was no closing, as contemplated by the agreements, the agreements do not release the filed foreign judgment.

Another motion filed by Lurie on December 3, 1996, claimed that the foreign judgment was defective because it did not state the name of the judgment creditor, as required by § 25-9-504, MCA. He argued that Blackwell incorrectly identified himself in his individual capacity, rather than as the liquidating trustee of the trust.

The District Court held a hearing on February 13,1997, to consider all four of Lurie’s motions. On March 3, 1997, the District Court issued a memorandum and order denying all of Lurie’s motions. The District Court ruled that because the closing never took place, the agreements were never completed and, thus, were unenforceable. The District Court also concluded that Blackwell properly identified himself in his filing of the foreign judgment because § 25-9-504, MCA, *355 only requires that the notice identify the plaintiff/judgment creditor, and does not require that their representative capacity be identified. Lurie appeals from the memorandum and order of the District Court.

ISSUE 1

Did the District Court err in upholding the Bankruptcy Court’s determination that Lurie was unable to close as a matter of law and that the release filed by Lurie on October 22, 1996, did not comply with § 25-9-311, MCA, and therefore was unenforceable?

Our standard of review for findings of fact is whether a finding is “clearly erroneous.” Steer, Inc. v. Department of Revenue (1990), 245 Mont. 470, 474, 803 P.2d 601, 603. “[A] finding is ‘clearly erroneous’ when, although there is evidence to support it, a review of the record leaves the court with the definite and firm conviction that a mistake has been committed.” Steer, 245 Mont. at 474, 803 P.2d at 603.

When we review a district court’s conclusions of law, our standard of review is plenary and we must determine whether the court’s conclusions are correct as a matter of law. In re Matter of Kovatch (1995), 271 Mont. 323, 326, 896 P.2d 444, 446; Steer, 245 Mont, at 474-75, 803 P.2d at 603.

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Bluebook (online)
943 P.2d 1318, 284 Mont. 351, 54 State Rptr. 916, 1997 Mont. LEXIS 190, Counsel Stack Legal Research, https://law.counselstack.com/opinion/blackwell-v-lurie-mont-1997.