T3 Properties, LLC v. Persimmon Investments, Inc.

2013 UT App 38, 299 P.3d 613, 728 Utah Adv. Rep. 47, 2013 WL 653167, 2013 Utah App. LEXIS 46
CourtCourt of Appeals of Utah
DecidedFebruary 22, 2013
Docket20110445-CA
StatusPublished
Cited by2 cases

This text of 2013 UT App 38 (T3 Properties, LLC v. Persimmon Investments, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of Utah primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
T3 Properties, LLC v. Persimmon Investments, Inc., 2013 UT App 38, 299 P.3d 613, 728 Utah Adv. Rep. 47, 2013 WL 653167, 2013 Utah App. LEXIS 46 (Utah Ct. App. 2013).

Opinion

Opinion

ROTH, Judge:

T1 This dispute concerns the interpretation of statutes that govern the creation of judgment liens (the judgment lien statute). See Utah Code Ann. §§ 78-22-1, -1.5 (Lexis Supp. 2001) (effective until July 1, 2002) (current version at id. §§ T78B-5-202, -201 (LexisNexis 2012)). In the district court, the parties both asserted competing claims for declaratory relief, requesting that the court decide whether Defendant Persimmon Investments, Inc. (Persimmon) has a judgment lien on a parcel of property (the Property), whose record owner is Plaintiff TS Properties, LLC (T8). Persimmon and T3 brought cross-motions for partial summary judgment. The district court granted partial summary judgment in favor of T3 and denied Persimmon's cross-motion. We affirm.

BACKGROUND 1

2 In 2000, Chad A. Harding transferred the Property, located in Salt Lake County, to Brandon Earl. 2 In March 2001, Larry Larson filed in Salt Lake County a lawsuit against Earl (the Larson Lawsuit). The district *614 court entered a default judgment against Earl in favor of Larson in June 2001 for approximately $75,000 (the Judgment).

T3 In January 2002, Earl executed a quit claim deed conveying any interest he had in the Property back to Harding. This transfer was recorded in January 2008. Then, "(through mesne conveyances," the Property was eventually transferred to T3 in September 2006, and the conveyance was recorded that same month.

T 4 In February 2009, Persimmon recorded in the Salt Lake County Recorder's Office a notice of assignment of the Judgment from Larson and asserted that it had a judgment lien on the Property. Over the next few months, Persimmon initiated efforts to execute on the Judgment by having the Property sold. Persimmon also filed with the district court in the Larson Lawsuit a document titled "Information Statement. 3

{5 When Persimmon attempted to execute on the Judgment, T8 sent a notice informing Persimmon that it did not have a judgment lien on the Property and asserting that Persimmon's attempts to execute on the judgment constituted a wrongful lien. Nonetheless, Persimmon went ahead with the execution sale of the Property in April 2009 and then purchased the Property at the sale.

T6 In April 2009, TS filed a complaint against Persimmon, and Persimmon answered and counterclaimed. Among other things, both parties made competing claims for declaratory relief, both of which focused on whether the Judgment created a judgment lien on the Property under the judgment lien statute. Persimmon and T3 asserted differing interpretations of the statute: Persimmon contended in essence that the original entry of the Judgment itself sufficed to create a judgment lien on the Property, while T3 argued that the statute required additional steps that Persimmon had failed to take before the Property was transferred from Earl back to Harding in January 2002.

17 T3 and Persimmon filed cross-motions for partial summary judgment on their declaratory relief claims. The district court granted T3's motion and denied Persimmon's, concluding that the Judgment had not created a judgment lien on the Property before January 2002 when Earl transferred the Property back to Harding, TJ's predecessor in interest, Thus, as a consequence, Persimmon had no right to execute on the Property and accordingly had no claim to ownership by virtue of its purchase of the Property at the execution sale. 4 Persimmon appeals.

ISSUE AND STANDARDS OF REVIEW

T8 Persimmon argues that the district court erred in granting partial summary judgment to T8. Summary judgment is appropriate when "there is no genuine issue as to any material fact and ... the moving party is entitled to a judgment as a matter of law." Utah R. Civ. P. 56(c). The district court's decision to grant a motion for summary judgment presents a question of law that is reviewed for correctness. Harvey v. Cedar Hills City, 2010 UT 12, ¶ 10, 227 P.3d 256. Here, the relevant facts are generally not in dispute and the legal issue underlying summary judgment involves interpretation of the judgment lien statute. Issues of statutory interpretation also present a question of law and are reviewed for correctness. Id.

ANALYSIS

I. The District Court Correctly Granted Summary Judgment to T3 Because Persimmon Failed To Comply with the Requirements of the Judgment Lien Statute.

T9 The issue before us is whether the Judgment became a judgment lien on the Property when it was entered in June 2001 and thus before Earl transferred the Property back to Harding in January 2002. Resolution of this issue requires interpretation of *615 the judgment lien statute. When confronted with an issue of statutory interpretation, our goal is to ascertain the true intent and purpose of the statute. Anderson v. Bell, 2010 UT 47, ¶ 9, 234 P.3d 1147. best evidence of legislative intent is the plain language of the statute itself." Id. (citation and internal quotation marks omitted). Thus, "[when interpreting statutes, we first look to the plain language of the statute and give effect to that language unless it is ambignous." State v. Jeffries, 2009 UT 57, ¶ 7, 217 P.3d 265. And "[when examining the statutory language we assume the legislature used each term advisedly and in accordance with its ordinary meaning." Id. (citation and internal quotation marks omitted).

A. Evolution of the Judgment Lien Statute

[10 The judgment lien statute has been revised numerous times over the past decades, and some of those revisions occurred between the entry of the Judgment in June 2001 and the filing of this lawsuit in 2009. Ultimately, we conclude that the version of the judgment lien statute that was in effect until July 1, 2002 (the 2001 version) is controlling here. See infra 115 n.6. But because it is ultimately relevant to our analysis, we will briefly summarize the legislative evolution of the judgment lien statute since 1992.

{11 In 1992, Utah Code section 78-22-1 (section 1) provided that the entry of a judgment by a district court automatically created a lien on any real property of the judgment debtor if that property was located in the same county where the judgment was entered. Utah Code Ann. § 78-22-1(2) (Mi-chie Supp. 1992) ("[The entry of judgment by a district court is a lien upon the real property of the judgment debtor, not exempt from execution, owned or acquired during the existence of the judgment, located in the county in which the judgment is entered."). In 1997, section 1 was amended to apply only to judgments entered before July 1, 1997. Id. (Michie Supp. 1997) ("Prior to July 1, 1997, ... the entry of judgment by a district court is a lien upon the real property of the judgment debtor, not exempt from execution, owned or acquired during the existence of the judgment, located in the county in which the judgment is entered." (emphasis added)).

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2013 UT App 38, 299 P.3d 613, 728 Utah Adv. Rep. 47, 2013 WL 653167, 2013 Utah App. LEXIS 46, Counsel Stack Legal Research, https://law.counselstack.com/opinion/t3-properties-llc-v-persimmon-investments-inc-utahctapp-2013.