Lopez v. State.

328 P.3d 320, 133 Haw. 311, 2014 WL 551573, 2014 Haw. LEXIS 63
CourtHawaii Supreme Court
DecidedFebruary 12, 2014
DocketSCWC-11-0000512
StatusPublished
Cited by4 cases

This text of 328 P.3d 320 (Lopez v. State.) is published on Counsel Stack Legal Research, covering Hawaii Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lopez v. State., 328 P.3d 320, 133 Haw. 311, 2014 WL 551573, 2014 Haw. LEXIS 63 (haw 2014).

Opinions

Opinion of the Court by

RECKTENWALD, C.J.

This appeal requires us to consider whether a lien recorded by the Child Support Enforcement Agency (CSEA) for unpaid child support has priority over an attorney’s lien established for payment of fees in an unrelated, subsequently filed action. In 1997, the CSEA recorded a statutory lien on Patrick Lopez’s real and personal property for delinquent child support. More than a decade later, on June 30, 2008, Lopez entered into a contingency agreement with the law firm of Eric A Seitz for legal representation in an unrelated civil action for personal injury. Under the agreement, Seitz’s law firm was to receive one-third of any recovery obtained. Seitz’s law firm filed a personal injury action on behalf of Lopez against the State, which resulted in a $9,000 arbitration award in Lopez’s favor. A dispute then arose between the State and Seitz’s law firm as to whether the 1997 CSEA lien, which amounted to more than $9,000, had priority over Seitz’s attorney’s lien.

Lopez requested that the circuit court order the State to, inter alia, “make full payment” of the arbitration award. Seitz asserted that his interest in fees was distinct from any lien on Lopez’s property. In opposition, the State argued that Hawai’i Revised Statutes (HRS) § 576D-10.5, which governs CSEA liens, provides that CSEA liens have priority over all other liens except for tax liens. The State also argued that HRS § 507-81, which governs attorney’s liens, provides that an attorney’s lien is established after commencement of the action; thus, because Lopez’s action commenced after the CSEA lien was recorded, the CSEA lien has priority. The circuit court ruled that the CSEA’s statutory lien had priority over Lopez’s attorneys’ lien and denied Lopez’s motion.1

Lopez appealed, arguing that the circuit court erred in denying his motion because his attorneys’ lien constitutes a property interest that is independent from Lopez’s interest in the judgment, and that thus, equitable and [313]*313public policy considerations favor giving an attorney’s lien priority over the CSEA’s lien. The Intermediate Court of Appeals (ICA) affirmed the circuit court’s order. Lopez v. State, No. CAAP-11-0000512, 128 Hawai'i 497, 2012 WL 5520465, at ⅜2 (Haw.App. Nov. 13, 2012).

For the reasons set forth below, we hold that HRS § 507-81 does not provide a superior or independent right for an attorney’s property interest in a judgment over a prior recorded CSEA lien. Accordingly, we affirm the ICA’s December 12, 2012 judgment.

I. Background

The following factual background is taken from the record on appeal.

A. CSEA and Attorney’s Liens

On August 20, 1997, the Office of Child Support Hearings of the State Department of the Attorney General filed an administrative order in the Family Court of the First Circuit stating that Lopez owed $17,964 in child support debt. The administrative order was filed in the state Bureau of Conveyances on September 15, 1997. Thus, a CSEA lien was placed on Lopez’s real and personal property. See HRS § 576D-10.5.2

On June 30, 2008, Lopez entered into a contingency agreement with Seitz’s law firm for legal representation in a civil action for personal injury. The agreement stated that Seitz’s law firm would receive one-third of any recovery obtained, and provided that the firm “is given a lien for its fees, costs, and expenses upon any judgment or settlement and is authorized to deduct such fees, costs, and expenses therefrom and to pay the balance to [Lopez].”

On July 13, 2009, Seitz’s law firm filed a complaint on behalf of Lopez against the State for injuries Lopez allegedly suffered during his incarceration at the Halawa Correctional Facility. In addition to damages, Lopez sought “reimbursement of his costs and expenses herein, including reasonable provision for his attorneys’ fees[.]”

On May 18, 2010, the CSEA notified Seitz that it was asserting its 1997 lien on Lopez’s property and that the lien amount was $23,969.99 as of April 30, 2010:

In accordance with HRS § 576D-10.5, the CSEA hereby asserts its statutory lien upon all of Lopez’s personal and real property including any settlement or other funds which you are now holding or will be holding in the future for Lopez, to be applied against Lopez’s child support arrears.
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The CSEA has learned that Lopez may be receiving an award of funds in the captioned litigation. The CSEA requires that you pay any such funds or property due to him pursuant to CSEA’s lien up to the amount owing of $23,969.99, which may be subject to change, pursuant to HRS § 576D-10.5.

Lopez’s civil action was placed in the Court Annexed Arbitration Program, and on August 10, 2010, an arbitrator found that Lopez was entitled to damages in the amount of [314]*314$9,000 but did not award Lopez any costs.3 On September 9, 2010, the arbitrator’s award in favor of Lopez and against the State was entered as final judgment in the ease. According to Seitz, Seitz’s law firm and the State then exchanged letters between September 2010 and December 2010 expressing their opposing views regarding the priority of the CSEA’s lien and the attorney’s lien.

B. Circuit Court Proceedings

On January 14, 2011, Lopez filed a Motion for Issuance of Writ of Execution/Mandamus pursuant to Hawaii Rules of Civil Procedure Rule 69. The motion requested that the circuit court “command[ ] [the State] to make full payment of the judgment entered herein on September 9, 2010 plus interest, and award [Lopez] his attorneys fees and costs for bringing this motion, or to appear before [the] Court and show cause why [the State] has not done so.”4

On March 9, 2011, the State filed a memorandum in opposition to Lopez’s motion. The State noted that resolution of Lopez’s motion turned on interpretation of HRS §§ 507-815 and 576D-10.5.6 The State ar[315]*315gued that a plain reading of HRS § 576D-10.5 mandates priority of the CSEA lien over Lopez’s attorneys’ lien. The State also argued that, when HRS § 576D-10.5 is read with HRS § 507-81

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Cite This Page — Counsel Stack

Bluebook (online)
328 P.3d 320, 133 Haw. 311, 2014 WL 551573, 2014 Haw. LEXIS 63, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lopez-v-state-haw-2014.