LNV Corp. v. Fauley

471 P.3d 111, 305 Or. App. 251
Court of Appeals of Oregon·Decided July 8, 2020·No. A164792·Published

Opinion

Argued and submitted May 17, 2018, affirmed July 8, petition for review denied December 10, 2020 (367 Or 290)

LNV CORPORATION, a Nevada corporation, Plaintiff-Respondent,

v.

Robynne A. FAULEY,

an individual, Defendant-Appellant,

and

U. S. BANK NATIONAL ASSOCATION, Defendant.

Clackamas County Circuit Court 16CV24589; A164792

471 P3d 111

In this challenge to the trial court’s order under ORS 18.948(2) confirming a sheriff’s execution sale of real property. Fauley asserts that the trial court erred in concluding that she had not established that it was probable that she suffered damage, because she was deprived of the right of possession upon the sale of the property. Held: The remedy available to Fauley under ORS 18.948(2) was a resale of the property, and, because the probable damage alleged by Fauley would not have been remedied by a resale, the trial court did not err in concluding that it was not probable that she suffered damage.

Affirmed.

Eve L. Miller, Judge. J. Ryan Adams argued the cause and filed the briefs for appellant. Also on the opening brief was Tyler Smith and Associates, PC.

Erick J. Haynie argued the cause for respondent. Also on the brief was Perkins Coie LLP.

Scott Ciecko and Stephen L. Madkour filed the brief amicus curiae for Clackamas County.

Before Armstrong, Presiding Judge, and Tookey, Judge, and Shorr, Judge.

252 LNV Corp. v. Fauley

ARMSTRONG, P. J. Affirmed. Shorr, J., dissenting.

Cite as 305 Or App 251 (2020) 253

ARMSTRONG, P. J.

The trial court entered an order under ORS 18.948(2) confirming a sheriff’s execution sale of real property . To successfully challenge the lawfulness of an execution sale of real property under ORS 18.948(2), an objector to the sale must establish that (1) the sale was “not conducted in a manner that substantially conformed with the manner required by law” and (2) “as a result it was probable that the [objector] suffered damage.” Fauley, who objected to the execution sale that is the subject of this appeal, challenges the sale-confirmation order, raising two assignments of error. In her first assignment, Fauley asserts that the trial court erred in failing to conclude that the sale was not lawful: Under ORS 18.872, the sheriff’s office must return a writ of execution to the court administrator within 60 days after the sheriff receives the writ (unless the judgment creditor obtains an extension, or the court extends the period for good cause), and Fauley contends that the sheriff returned the writ of execution concerning her real property well after the 60-day deadline. In her second assignment, Fauley asserts that the court erred in concluding that she had not established that it was probable that she suffered damage, because she was deprived of the right of possession upon the sale of the property and that the sheriff’s delay in selling the property resulted in about an increase of $20,000 in accrued post-judgment interest that had an adverse effect on her right to redeem the property.

LNV Corporation (LNV) responds that we lack jurisdiction over this case because an order made under ORS 18.948 “conclusively establishes” that an execution sale of real property was conducted in the manner required by the law. That is, according to LNV, the trial court has the final say on the lawfulness of an execution sale of real property when it confirms the sale under ORS 18.948(2), and an order under that provision is therefore not appealable. In the alternative, if an order made under ORS 18.948 is appealable , LNV argues that the trial court did not err in concluding that Fauley failed to prove that it was probable that she suffered damage, because (1) Fauley failed to preserve her argument that post-judgment interest accrual prevented the exercise of her right of redemption; (2) Fauley has not, 254 LNV Corp. v. Fauley

in fact, been dispossessed of the property because, at the time of the hearing objecting to the execution sale, Fauley continued to possess the home and the sheriff had not taken any steps to remove her; and (3) the sheriff’s delay of the execution sale did not cause damage to Fauley because the delay extended any possessory right held by Fauley.1 Our review concerns the construction and application of ORS 18.948; we review the trial court’s determinations for legal error. See South Valley Bank & Trust v. Colorado Dutch, LLC, 291 Or App 175, 178, 420 P3d 653 (2018) (reviewing a trial court’s conclusions and application of a statute for legal error, applying the analytical approach set out in State v. Gaines, 346 Or 160, 171-72, 206 P3d 1042 (2009)); cf. Premier West Bank v. GSA Wholesale, LLC, 196 Or App 640, 642, 103 P3d 640 (2004) (reviewing for legal error trial court order for sale of property under statute authorizing judgment creditor to execute against real property). As to historical findings of fact, the facts necessary to resolve those legal issues are undisputed. As we explain below, we conclude that (1) the trial court’s confirmation order is appealable and (2) the trial court did not err in confirming the execution sale because Fauley failed to establish that it was probable that she suffered damage. We need not reach the issue whether the sale was conducted in a manner that did not substantially conform with law. We therefore affirm the order confirming the sale of the real property.

BACKGROUND

LNV ultimately held the note obligating Fauley to make monthly payments on a loan that she had received. The note was secured by a deed of trust on Fauley’s home. Fauley defaulted on the loan, and LNV sought judicial foreclosure

1 LNV and Clackamas County, in an amicus brief, assert that, in any event, the sale was made in a manner that substantially conformed with the 60-day return-of-writ requirement under ORS 18.872 because the sheriff’s office determined that the writ was not “received” on or around the time that the office came into possession of the writ but on a much later date, which was after the office examined the writ for legal sufficiency and date-stamped it as “Received.” We do not reach whether the manner in which the sheriff’s office handled the writ, viz., by treating the writ as received by the office only after the office examined it for legal sufficiency, complies with ORS 18.872.

Cite as 305 Or App 251 (2020) 255

of the trust deed in federal court. LNV Corp. v. Fauley, 178 F Supp 3d 1043 (D Or 2016), aff’d, 698 Fed Appx 479 (9th Cir 2017). LNV obtained summary judgment on its entitlement to judicial foreclosure, and the district court entered a judgment of foreclosure in favor of LNV.

In August 2016, LNV filed the foreclosure judgment as a foreign judgment in the Clackamas County Circuit Court. On September 18, 2016, a writ of execution for the foreclosure judgment was issued by the court, “making due return within 60 days after [the sheriff] receive[d] the writ.” On February 2, 2017, the sheriff’s office date-stamped the writ as “received.” The sheriff conducted the foreclosure sale, and LNV purchased the property on March 14, 2017. On March 16, 2017, the sheriff returned the writ, certifying in the return that it had received the writ on February 2, 2017.

Fauley, as allowed by ORS 18.948, filed an objection to the sale. Fauley argued that, contrary to the sheriff ’s assertion that the writ was “received” on February 2, 2017, the writ actually was received by the sheriff sometime between the date that the writ was issued—September 13, 2016—and the date that LNV recorded with the county recorder a copy of the writ, as required by ORS 18.870— September 19, 2016. Because the writ was returned on March 16, 2017, Fauley argued, the writ was returned well after the 60 days required by ORS 18.872(1). According to Fauley, the sale of her property was made without lawful authority and was therefore void.

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LNV Corp. v. Fauley, 471 P.3d 111, 305 Or. App. 251 (Or. Ct. App. 2020).

471 P.3d 111 (LNV Corp. v. Fauley) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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