Irving Place v. 628 Park Ave

2015 UT 91
CourtUtah Supreme Court
DecidedNovember 13, 2015
DocketCase No. 20130937
StatusPublished
Cited by2 cases

This text of 2015 UT 91 (Irving Place v. 628 Park Ave) is published on Counsel Stack Legal Research, covering Utah Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Irving Place v. 628 Park Ave, 2015 UT 91 (Utah 2015).

Opinion

This opinion is subject to revision before final publication in the Pacific Reporter

2015 UT 91

IN THE

SUPREME COURT OF THE STATE OF UTAH

IRVING PLACE ASSOCIATES, Petitioner, v. 628 PARK AVE, LLC, Respondent.

No. 20130937 Filed November 13, 2015

On Certiorari to the Utah Court of Appeals

Third District, Summit County The Honorable Keith Kelley No. 100500068

Attorneys: Bruce H. Shapiro, Andrew M. Wadsworth, Salt Lake, for respondent Ronald G. Russell, Rodger M. Burge, Salt Lake, for petitioner

ASSOCIATE CHIEF JUSTICE LEE authored the opinion of the Court, in which CHIEF JUSTICE DURRANT, JUSTICE HIMONAS, and JUDGE BRADY joined.

Having recused herself, JUSTICE DURHAM does not participate herein; DISTRICT COURT JUDGE M. JAMES BRADY sat.

ASSOCIATE CHIEF JUSTICE LEE, opinion of the Court: ¶1 By statute, a “judgment entered by a district court or a justice court” in Utah “becomes a lien upon real property if: (i) the judgment or an abstract of the judgment containing the information identifying the judgment debtor described in Subsection 78B-5-201(4) is recorded in the office of the county recorder; or (ii) the judgment or an abstract of the judgment and a separate information statement of the judgment creditor as described in Subsection 78B-5-201(5) is IRVING PLACE v. 628 PARK AVE. Opinion of the Court recorded in the office of the county recorder.” UTAH CODE § 78B-5- 202(7)(a) (2008). 1 We are asked to interpret this provision in this case. In the proceedings in the district court, a default judgment was entered against James P. Ring and in favor of 628 Park Avenue LLC. Respondent 628 Park Avenue claims to have acquired a judgment lien by recording that judgment—a judgment that was nonfinal because claims against other defendants remained pending when it was entered. ¶2 We hold that 628 Park Avenue failed to acquire a judgment lien under the applicable statutory provisions. First, we conclude that only a final judgment qualifies as a “judgment” sustaining a lien under Utah Code section 78B-5-202(7). Second, and alternatively, we find that 628 Park Avenue’s judgment failed to include “the information identifying the judgment debtor” required by section 78B-5-202(7)(a)(i). I

¶3 In late September 2008, 628 Park Avenue filed a complaint asserting claims for unlawful detainer, breach of a promissory note, breach of lease, and declaratory relief against James Ring and other defendants. Ring failed to file an answer by mid-November and the court entered default. About three weeks later, in December 2008, the court entered a default judgment against Ring for $150,144. The claims against the remaining defendants remained pending. And the default judgment against Ring was not certified as final under Utah Rule of Civil Procedure 54(b). ¶4 Ring was the record owner of a condominium unit in Park City at the time the default judgment was entered. With that in mind, 628 Park Avenue recorded a copy of the default judgment in the Summit County Recorder’s Office one week after the default judgment was entered. The recorded default judgment identified James P. Ring as the judgment debtor. But it contained no other identifying information. 2

1 These provisions have been amended recently. 2014 Utah Laws Ch. 151 (H.B. 315). But we cite the 2008 version of the code because that was the governing law at the time of the relevant events in this case. 2 628 Park Avenue also claims to have simultaneously submitted to the recorder’s office a separate information statement containing the additional information called for in Utah Code section 78B-5- (continued . . .) 2 Cite as: 2015 UT 91 Opinion of the Court

¶5 Ring conveyed the Park City property to Irving Place Associates by warranty deed in March 2009. Irving Place claims that it was not aware of any alleged judgment lien by 628 Park Avenue at that time. It claims that it believed it was taking the property free of any liens or encumbrances. ¶6 In November 2009, 628 Park Avenue subsequently obtained an augmented judgment against Ring in the amount of $498,204. Thereafter, 628 Park Avenue recorded the augmented judgment—a recording that this time included the separate information statement containing the information called for in Utah Code section 78B-5- 201(4)(b). 628 Park Avenue then obtained a writ of execution on the augmented judgment, directing the sale of all of Ring’s nonexempt real property. ¶7 628 Park Avenue sought to apply the writ of execution to the Park City property that Ring had deeded to Irving Place—citing Ring’s ownership of the property at the time the original default judgment was recorded. A day before a scheduled sheriff’s sale, Irving Place filed a declaratory judgment action seeking to invalidate 628 Park Avenue’s claimed judgment lien on the Park City property. ¶8 The district court initially entered a preliminary injunction blocking the sheriff’s sale during the pendency of the declaratory judgment action. But it ultimately entered summary judgment against Irving Place and in favor of 628 Park Avenue, holding that 628 Park Avenue possessed a valid judgment lien against the property in the amount of the original default judgment. 3 ¶9 First, the district court noted that the operative statute speaks of liens on a “judgment”—not “final judgment”—and thus concluded that a nonfinal default judgment could qualify. Second, the district court determined that the informational requirements of the statute were satisfied by the identification of the judgment debtor in the judgment recorded with the recorder’s office.

201(4)(b); The default judgment as recorded, however, did not include any such statement. So we proceed on the premise that only the judgment—and no separate information statement—was filed. 3 The district court also granted summary judgment in favor of Irving Place in part, holding that the judgment lien did not include the augmented judgment amounts. That issue was not appealed and is therefore not before us.

3 IRVING PLACE v. 628 PARK AVE. Opinion of the Court ¶ 10 A divided panel of the Utah Court of Appeals affirmed. Irving Place Assocs. v. 628 Park Ave., LLC, 2013 UT App 204, 309 P.3d 260. On the first issue the panel unanimously agreed that the “judgment[s]” covered by the statute encompassed nonfinal judgments. Id. ¶¶ 9–12. On the second issue, the panel was divided. The majority agreed with the district court—concluding that the statute could be satisfied by the submission of a judgment identifying the debtor by name. Id. ¶¶ 13–17. The dissent interpreted the statute differently. It concluded that the mere identification of a judgment debtor on the face of a judgment was insufficient, and would have interpreted the statute to require the judgment (or abstract) to include “the same specific information” required in the separate information statement under Utah Code section 78B-5- 201(4)(b). Id. ¶¶ 19–27. ¶ 11 Irving Place filed a petition for certiorari, which we granted. The petition presents legal questions of statutory interpretation. We consider such issues de novo, affording no deference to the district court’s legal conclusions. See, e.g., Manzanares v. Byington (In re Adoption of Baby B.), 2012 UT 35, ¶ 41, 308 P.3d 382. II

¶ 12 As a general rule “a judgment entered in a district court” may sustain a “lien upon” real property in Utah. UTAH CODE § 78B-5- 201(3)(a) (2008). The code prescribes two alternative means of establishing such a lien: “(i) the judgment or an abstract of the judgment containing the information identifying the judgment debtor as described in Subsection 78B-5-201(4) is recorded in the office of the county recorder; or (ii) the judgment or an abstract of the judgment and a separate information statement of the judgment creditor as described in Subsection 78B-5-201(5) is recorded in the office of the county recorder.” Id.

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2015 UT 91, Counsel Stack Legal Research, https://law.counselstack.com/opinion/irving-place-v-628-park-ave-utah-2015.