Oregon Recovery, LLC v. Lake Forest Equities, Inc.

211 P.3d 937, 229 Or. App. 120, 2009 Ore. App. LEXIS 812
CourtCourt of Appeals of Oregon
DecidedJune 17, 2009
DocketCV04120018; A130313
StatusPublished
Cited by2 cases

This text of 211 P.3d 937 (Oregon Recovery, LLC v. Lake Forest Equities, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of Oregon primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Oregon Recovery, LLC v. Lake Forest Equities, Inc., 211 P.3d 937, 229 Or. App. 120, 2009 Ore. App. LEXIS 812 (Or. Ct. App. 2009).

Opinion

*122 LANDAU, P. J.

Plaintiffs appeal a judgment dismissing their claims on the ground that they are based on judgments that had expired as a matter of law. Defendants move to dismiss the appeal on the same ground. We deny the motion to dismiss; whether or not the trial court was correct in determining that the case before it was moot does not mean that this appeal— concerning the correctness of that determination—is moot. We then conclude for the reasons stated in this opinion that the trial court, in fact, correctly determined that plaintiffs’ claims are moot and affirm on that basis.

The relevant facts are not in dispute. On April 2, 1985, plaintiff Craig H. Cowles obtained a judgment against defendant Edward F. Byczynski. Two months later, on June 4, 1985, Commercial Agency obtained a judgment against Byczynski as well. Sometime later, Commercial Agency assigned its rights under that judgment to plaintiff Oregon Recovery, LLC.

On February 1,1995, Cowles renewed his judgment against Byczynski. On May 4 of that same year, Oregon Recovery renewed its judgment against Byczynski.

On December 1, 2004—several months before both of the judgments were set to expire, former ORS 18.360(1) (2001) 1 —Cowles and Oregon Recovery initiated this action against Byczynski. Cowles and Oregon Recovery alleged that Byczynski owned defendant Lake Forest Equities, Inc., which owned certain real property. According to the complaint, Lake Forest Equities deeded the property to Byczynski, who then deeded the same property to defendant Jeanne Graves, all in an effort on Byczynski’s part to avoid possessing property that could be used to satisfy the judgments against him, in violation of the Uniform Fraudulent Transfer Act (UFTA), ORS 95.200 to 95.310. In a similar vein, the complaint alleged that Byczynski transferred to Graves shares of a corporation that he owned in defendant National Tenant Network, Inc. Again, the complaint alleged that Byczynski *123 engaged in the transaction to hinder the collection of the two outstanding judgments against him. Cowles and Oregon Recovery asked the court to set aside the transfers and to have the proceeds of those assets held in trust for plaintiffs and applied to payment of plaintiffs’judgments.

Several months after the filing of the complaint, on February 1, 2005, Cowles’s judgment against Byczynski expired. On May 4, 2005, Oregon Recovery’s judgment against Byczynski also expired.

The following month, all defendants moved for summary judgment dismissing the claims against them, asserting that, in light of the expiration of the judgments, those claims had become moot. Defendants argued that each of those claims depends on the existence of a debt to Cowles or Oregon Recovery, that the judgments were the debts, and that the claims therefore became moot when the judgments expired.

Cowles and Oregon Recovery argued that a conveyance is fraudulent under the UFTA if it occurred at the time the judgment remained unsatisfied and that “[n]othing under the Act states Plaintiffs’ judgments must remain in effect throughout the prosecution of the case.” They further argued that, because they commenced their action before the expiration of the judgments, the expiration of the judgments was effectively tolled pending the litigation. In any event, they argued, the fact that Byczynski was attempting to conceal himself and his assets tolled the expiration of the judgments under ORS 12.150. Finally, they contended that their claim for the imposition of a constructive trust is not dependent on the existence of an enforceable judgment.

The trial court rejected each of Cowles and Oregon Recovery’s arguments and agreed with defendants that they were entitled to summary judgment. The court dismissed the claims as moot. Cowles and Oregon Recovery then moved for leave to amend their complaint to add allegations that Byczynski had attempted to conceal himself and his assets to avoid paying on the judgments. The trial court denied the motion.

*124 On appeal, Cowles and Oregon Recovery assign error to the trial court’s decision to grant summary judgment dismissing their claims and to the court’s denial of their motion to amend. In support of those assignments, they essentially renew the same arguments that they made before the trial court. Likewise, defendants on appeal contend, as they did before the trial court, that each of the claims against them—including the claim for imposition of a constructive trust—depends on the existence of a debt, which, in turn, was embodied in the judgments. When the judgments expired, they contend, so did the underlying debts. As for the denial of the motion to amend, defendants contend that the trial court did not err, because the addition of allegations of concealment would have made no difference to the outcome of the case.

We begin with the trial court’s dismissal of all claims based on ORS 18.360(1). That statute provided, in part:

“[Wjhenever a period of 10 years elapses after the entry of a judgment in a circuit court, the judgment, and any docketed or recorded lien thereof shall expire. However, before the expiration of 10 years the circuit court for the county in which the judgment originally was entered, on motion, may renew the judgment and cause a notation in the register and the judgment docket indicating the renewal of the judgment to be made. The renewed judgment and any lien thereof expire 10 years after entry of the renewed judgment. * * * Execution may issue upon the renewed judgment until the judgment expires or is fully satisfied.”

Under that statute, a judgment may be renewed for another 10-year period. At the conclusion of the 20-year period from the original date of entry of the judgment, it expires.

The statute defines the time during which the judgment exists and may be executed upon. It is not, however, to be confused with a statute of limitations. We addressed that issue in Hovden and Hovden, 104 Or App 514, 517, 802 P2d 89 (1990), in which the state contended that it was not precluded from collecting child support arrearages that had been reduced to judgment but had not been renewed at the end of 10 years. The state argued that the expiration of the 10-year period prescribed by the pertinent version of ORS 18.360(1) *125 was not an impediment to its collection efforts because, under ORS 12.250, statutes of limitations are not generally applicable to the state. We rejected the argument:

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Timothy v. Pia Anderson Dorius Reynard Moss
2019 UT 70 (Utah Supreme Court, 2019)
Rrr, Inc. v. Toggas
98 F. Supp. 3d 12 (District of Columbia, 2015)

Cite This Page — Counsel Stack

Bluebook (online)
211 P.3d 937, 229 Or. App. 120, 2009 Ore. App. LEXIS 812, Counsel Stack Legal Research, https://law.counselstack.com/opinion/oregon-recovery-llc-v-lake-forest-equities-inc-orctapp-2009.