Cox Corp. v. Vertin

754 P.2d 938, 82 Utah Adv. Rep. 9, 1988 Utah LEXIS 43, 1988 WL 47184

• Court: Utah Supreme Court
• Decided: May 13, 1988
• Docket: 20393
• Status: Published

Opinions

HOWE, Associate Chief Justice:

Appellant Cox Corporation appeals the dismissal of its complaint to renew a judgment and judgment lien.

Appellant obtained a judgment against respondents Ronald and Joyce Vertin on November 26, 1974. The judgment was docketed in the Third District Court in Salt Lake County on December 4, 1974, thereby becoming a lien on respondents’ real property located at 4799 Quail Point Road in Salt Lake County. Utah Code Ann. § 78-22-1 (1987). Respondents filed for bankruptcy on December 29, 1975, and were discharged approximately one year later. They listed the Quail Point property among their assets; however, the property was not sold by the trustee, nor was the judgment lien avoided in the bankruptcy. The parties agree that the bankruptcy relieved respondents of all personal liability for the judgment.

On December 11, 1981, appellant commenced the instant action to renew its judgment and judgment lien. Respondents answered the complaint, raising the defense that the judgment had been discharged in bankruptcy. In a memorandum decision, the trial court held that the judgment lien was not extinguished by the bankruptcy and during its statutory eight-year life could have been foreclosed on any real property owned by respondents at the time they filed bankruptcy. However, since the bankruptcy discharged respondents’ personal liability on the judgment, the court held that neither the judgment nor the judgment lien could be renewed and dismissed appellant’s action.

Appellant contends that since the judgment lien was not avoided in the bankruptcy proceeding, it was renewable and the judgment should be renewed in some limited form to support the lien without reviving respondents’ personal liability. This theory finds no support in our statutory scheme. A judgment lien is purely a creation of statute. It does not exist in common law; therefore, the rights of the parties must be determined within the statutory framework. Messenger v. Burns, 86 Idaho 26, 382 P.2d 913 (1963).

The creation, legal effect, and extent of a judgment are set out in Utah Code Ann. § 78-22-1. That section provides, “The lien shall continue for eight years unless the judgment is previously satisfied....” Although some states may provide for the renewal or revival of a judgment lien, see Pruellage v. De Seaton Corp., 407 S.W.2d 36 (Mo.Ct.App.1966), our statutory scheme has no provision for an extension of a judgment lien independent of the judgment on which it is based. Federal Farm Mortgage Corp. v. Walker, 115 Utah 461, 206 P.2d 146 (1949). Nor do our statutes authorize the renewal of a judgment subject to limitations or restrictions imposed on it. Thus, the judgment lien cannot be extended beyond the statutory life of the judgment.

The lien of a renewal judgment attaches only from the date of entry of the new judgment and does not relate back to the date of the original judgment or extend the prior lien. Free v. Farnworth, 112 Utah 410, 188 P.2d 731 (1948). A renewal of a judgment results in a new judgment which, when docketed, creates a new lien “upon all the real property of the judgment debtor, ... owned by him at the time or by him thereafter acquired during the existence of said lien.” § 78-22-1.

The trial court did not err in allowing respondents to interpose their discharge in bankruptcy as a defense to the granting of a new judgment. There being a valid defense to the granting of a new judgment and no basis in law to otherwise renew or extend the lien, the trial court’s ruling must be affirmed.

HALL, C.J., and DURHAM, J„ concur. STEWART, J., concurs in the result.