FOX TROT PROPERTIES, LLC v. Wright

314 S.W.3d 286, 2010 Ky. LEXIS 151, 2010 WL 2470848
CourtKentucky Supreme Court
DecidedJune 17, 2010
Docket2009-SC-000329-MR
StatusPublished

This text of 314 S.W.3d 286 (FOX TROT PROPERTIES, LLC v. Wright) is published on Counsel Stack Legal Research, covering Kentucky Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
FOX TROT PROPERTIES, LLC v. Wright, 314 S.W.3d 286, 2010 Ky. LEXIS 151, 2010 WL 2470848 (Ky. 2010).

Opinion

*287 Opinion of the Court by

Justice NOBLE.

Appellant, Fox Trot Properties, LLC, appeals to this Court from an order of the Court of Appeals denying its petition for a writ of prohibition. For the reasons set forth below, the order of the Court of Appeals is affirmed.

I. Background

This case involves an order of the Letch-er Circuit Court staying the enforcement of its own judgment. In 1995, the court entered default judgment against DLX, Inc., the real party in interest, for $312,284.40. This judgment was then assigned to Appellant, Fox Trot Properties, LLC, in 2004.

The only asset DLX has which could satisfy the judgment is an 82-acre tract of land in Estill County. This land has been subject to substantial litigation in Estill Circuit Court, Letcher Circuit Court, and U.S. Bankruptcy Court, all relating to Fox Trot’s failed attempts to claim ownership of the tract, its placing clouds of title over the tract, and its attempts to force a sale of the tract to satisfy the judgment. This litigation has been going on from at least 2001 until at least 2008.

Based on this protracted litigation, DLX moved the Letcher Circuit Court in 2008 for partial relief from the judgment under CR 60. DLX claims that it should not have to pay full post-judgment interest because the only reason it has not yet satisfied the judgment is that Fox Trot has prevented the sale of the 82-acre tract through its many lawsuits. This is based on the equitable concept that a debtor does not owe interest during the period when the creditor prevents payment.

The Letcher Circuit Court ordered the parties to brief the motion and that Fox Trot be “stayed from any further actions to enforce the judgment until the issues have been fully briefed, presented and ruled upon by the Court.” In response, Fox Trot filed a writ of prohibition in the Court of Appeals, asserting that the Letch-er Circuit Court did not have jurisdiction to stay enforcement of its judgment while it considered DLX’s motion.

The Court of Appeals denied the writ. Fox Trot appealed to this Court as a matter of right. Ky. Const. § 115.

II. Analysis

A. Availability of the Writ

“[Wjrits of prohibition ... are extraordinary in nature, and the courts of this Commonwealth ‘have always been cautious and conservative both in entertaining petitions for and in granting such relief.’ ” Kentucky Employers Mut. Ins. v. Coleman, 236 S.W.3d 9, 12 (Ky.2007) (quoting Bender v. Eaton, 343 S.W.2d 799, 800 (Ky.1961)). A writ for prohibition may be issued if the lower court is (1) acting outside its jurisdiction and there is no remedy through an application to an intermediate court, or (2) acting erroneously within its jurisdiction, great and irreparable harm would result, and there would be no adequate remedy by appeal. Hoskins v. Maride, 150 S.W.3d 1, 10 (Ky.2004).

B. Jurisdiction to Issue the Stay

Fox Trot first argues it is entitled to the writ because the Letcher Circuit Court acted outside its jurisdiction by staying the enforcement of its own judgment. The basis of this claim is that the stay affects enforcement proceedings against the 82-acre tract, which is in another county. This Court disagrees that this deprives the Letcher Circuit Court of jurisdiction over its own judgment.

*288 The power of the court to stay enforcement of the judgment in this case comes from CR 62.01. That rule provides:

In its discretion and on such conditions for the security of the adverse party as are proper, the court may stay the execution of or any proceedings to enforce a judgment pending the disposition of a motion for relief from a judgment or order made pursuant to Rule 60.

This is precisely what happened here. DLX requested relief from the judgment under Rule 60. Its motion specifically cites CR 60.03, which gives the court the power “to relieve a person from a judgment ... on appropriate equitable grounds.” It can also be reasonably construed as a request for relief under CR 60.02(f), which gives the court the power to “relieve a party ... from its final judgment” for “any other reason of an extraordinary nature justifying relief.” The motion cites, and clearly requests, relief under CR 60. Under CR 62.01, then, it was within the court’s discretion to stay enforcement until it could rule on the motion.

The court had jurisdiction to do so. In fact, the only court with jurisdiction to stay enforcement of a judgment is the court which rendered that judgment — in this case, the Letcher Circuit Court. This has long been the rule in Kentucky. KRS 454.080 provides that:

An injunction to stay proceedings on a judgment shall not be granted ... in any other court than that in which the judgment was rendered. Nor shall such injunction be granted, unless the party applying therefor make affidavit that no injunction has been previously granted to stay the proceedings on such judgment.

This statute was enacted in 1952, and it is a verbatim recodification of Section 285 of the Civil Code of Practice, which dates back to the nineteenth century. Kentucky courts have long recognized that this language means “[t]he court in which the judgment was rendered alone had the jurisdiction to enjoin it.” McConnell v. Raive, 8 Ky. L. Rptr. 343, 1 S.W. 582, 582 (1886) (citing Section 285 of the Civil Code of Practice; Neeters v. Clements, 75 Ky. (12 Bush) 359 (1876); Davis v. Davis, 73 Ky. (10 Bush) 274 (1874)).

This rule ensures

that comity prevails among the various trial courts of the state. Orderly procedure and proper respect for courts requires that attacks upon their judgment should be made in the court rendering the judgment, rather than in other courts indiscriminately. Indeed, it would be unseemly for courts in one county to seek to control execution on a judgment validly entered in another jurisdiction.

30 Am.Jur.2d Executions and Enforcement of Judgments § 328 (2005) (footnotes omitted). “Thus, a judgment debtor must, if it has an adequate basis for doing so, request the court in the county in which the judgment was entered to stay execution.” Id. This is what DLX did.

Fox Trot argues that the Letcher Circuit Court lacked jurisdiction to issue the stay because the court’s order affected its attempts to enforce the judgment against the 82-acre tract, which happens to lie in Estill County. This argument fails, however, because this Court has consistently applied the same rule for cases involving enforcement actions against real estate in other counties.

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Related

Hoskins v. Maricle
150 S.W.3d 1 (Kentucky Supreme Court, 2004)
Bender v. Eaton
343 S.W.2d 799 (Court of Appeals of Kentucky (pre-1976), 1961)
Asset Acceptance, LLC v. Moberly
241 S.W.3d 329 (Kentucky Supreme Court, 2007)
Kentucky Employers Mutual Insurance v. Coleman
236 S.W.3d 9 (Kentucky Supreme Court, 2007)
Gross v. Commonwealth
648 S.W.2d 853 (Kentucky Supreme Court, 1983)
Kelly v. Kelly
63 Ky. 363 (Court of Appeals of Kentucky, 1866)
C., O. & S. W. R. R. v. Reasor
1 S.W. 599 (Court of Appeals of Kentucky, 1886)
Davis v. Davis
73 Ky. 274 (Court of Appeals of Kentucky, 1874)
Neeters v. Clements
75 Ky. 359 (Court of Appeals of Kentucky, 1876)

Cite This Page — Counsel Stack

Bluebook (online)
314 S.W.3d 286, 2010 Ky. LEXIS 151, 2010 WL 2470848, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fox-trot-properties-llc-v-wright-ky-2010.