Wyoming National Bank of Gillette v. Davis

770 P.2d 215, 1989 Wyo. LEXIS 63, 1989 WL 19494
CourtWyoming Supreme Court
DecidedMarch 6, 1989
Docket88-270
StatusPublished
Cited by5 cases

This text of 770 P.2d 215 (Wyoming National Bank of Gillette v. Davis) is published on Counsel Stack Legal Research, covering Wyoming Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wyoming National Bank of Gillette v. Davis, 770 P.2d 215, 1989 Wyo. LEXIS 63, 1989 WL 19494 (Wyo. 1989).

Opinion

GOLDEN, Justice.

The question presented in this appeal, which involves a priority dispute between competing lien creditors, is whether the trial court may enter a nunc pro tunc order in the succeeding spring term of court which purports to amend its preceding fall term of court judgment against a partnership so as to make the partners as individuals liable for the judgment and, thus, give priority to the judgment lien creditor.

We reverse.

FACTS

The parties have stipulated to the underlying facts. On July 29, 1983, Sharon Miller filed a civil action for damages for defective home construction in the district court against “Marshall Davis, Norman Bradley, and Eddie Maples, a partnership, d/b/a Triple S. Construction” and others. On May 6, 1984, lots 8C and 8D in a Campbell County subdivision, 8D being the lot at *216 issue in this action, belonged to Gary Davis and Marshall Davis, a partnership. On May 7, 1984, Marshall Davis and his wife Jamie Sue Davis were divorced. On August 31, 1984, Marshall Davis executed a note and mortgage on lot 8D to appellant Wyoming National Bank of Gillette (Bank); the mortgage was recorded November 1, 1984. The fall 1984 term of the district court opened September 10, 1984. On October 2, 1984, Gary Davis and his wife Mary Kay conveyed lots 8C and 8D to Marshall Davis; that deed was recorded November 1, 1984. On October 22, 1984, Marshall Davis executed a mortgage covering lot 8C to Jamie Sue Davis; the mortgage was recorded the same day.

On January 23, 1985, the IRS filed a tax lien in Campbell County against Marshall Davis and Jamie Sue Davis. Meanwhile, the Miller lawsuit had been proceeding and on January 17, 1985, a judgment for $50,-000, costs, and disbursements was signed in favor of Miller against the three named members of the Triple S. Construction partnership, one of whom was Marshall Davis. That judgment was filed January 30, 1985. The spring 1985 term of the district court opened on February 4,1985. On March 21, 1985, the district court entered an order nunc pro tunc amending Miller’s January 30, 1985, judgment against the Triple S. Construction partnership. The nunc pro tunc judgment allowed Miller to recover jointly and severally from the partners as individuals although they were named in her original complaint only in their partnership capacities. The IRS filed another tax lien on May 29, 1986.

On July 9, 1986, the Bank filed a complaint against appellees Jamie Sue Davis, Marshall Davis, Sharon Miller, the IRS, and WHC, Inc., seeking judgment against Marshall Davis for $54,655.68 plus interest and a declaration of the relative rights of the parties to lot 8D. Jamie Sue Davis, Sharon Miller, and the IRS answered timely requesting a determination of priorities and disbursement according to those priorities upon foreclosure. WHC, Inc., and Marshall Davis failed to answer. The Bank applied for default against those parties and the clerk of the district court entered default against each of them on February 19, 1987.

On July 10, 1987, counsel advised the district court that Jamie Sue Davis had filed a petition in bankruptcy on March 30, 1987. The district court then ordered the proceedings suspended pending the outcome of the bankruptcy petition on April 5, 1988. The proceedings resumed on May 3, 1988, after the bankruptcy was discharged.

All remaining parties made pretrial submissions of exhibits during June 1988, and on July 11, 1988, those parties attended a hearing before the district court. At the close of that hearing the district court ruled that Miller’s judgment lien, as reflected by the nunc pro tunc order of March 21, 1985, would relate back to the fall term of the district court under W.S. 1-17-302 (1977), thus giving Miller’s lien first priority against Marshall Davis. The district court assigned the Bank second priority, leaving the IRS third. A corresponding judgment was entered on August 23, 1988, and appeals by the Bank and the IRS followed. The IRS subsequently dropped its appeal before this court, leaving a priority dispute between the Bank and Miller for review.

ANALYSIS

The dispute on appeal is whether the priority date of Miller’s judgment lien against Marshall Davis as an individual, based on the March 21,1985, nunc pro tunc judgment, relates back to the opening day of the fall 1984 term of the district court. In Wyoming, valid judgment liens obtain priority under W.S. 1-17-302 (1977), 1 which provides:

The lands and tenements within the county in which judgment is entered are bound for satisfaction thereof from the first day of the term at which judgment is rendered, but judgments by confession and judgments rendered at the same term in which the action is commenced shall bind the lands only from the day on *217 which the judgments are rendered. All other lands as well as goods and chattels of the [judgment] debtor are bound from the time they are seized in execution.

(Emphasis added).

From October 2, 1984, forward, Marshall Davis has owned lot 8D as an individual and that property was never property owned or claimed by the Triple S. Construction partnership. Because of that circumstance, if Miller’s March 21, 1985, nunc pro tunc judgment was valid against Marshall Davis as an individual, and if it relates back to the first day of the term in which the original January 30, 1984, judgment against the partners was rendered, then Miller’s lien has a priority date of September 10, 1984, the first day of the fall 1984 term of the district court. 2 Conversely, if Miller’s nunc pro tunc judgment was not valid against Marshall Davis as an individual, then Miller has no judgment lien against lot 8D, Davis’ personal asset.

We hold that the district court erred in entering its nunc pro tunc order on March 21, 1985, by which it purported to amend Miller’s January 17, 1984, judgment against the Triple S. Construction partnership members as partners to also give Miller an additional substantive right of recovery against the partnership members as individuals. When Miller filed her original complaint against the Triple S. Construction partnership, W.S. 17-13-307 (1977) 3 gave her a statutory right to proceed against the partnership members both as partners and as individuals. See also L.C. Jones Trucking Co. v. Superior Oil Co., 68 Wyo. 384, 234 P.2d 802, 805-06 (1951). That “dual” right, however, must be exercised by the plaintiff in accordance with W.S. 1-16-505 (1977) 4 , which specifically provides: “The members of a partnership against which a judgment has been rendered in its firm name may by action be made parties to the judgment.” (Emphasis added).

Despite possessing the legal right to sue Marshall Davis as a partner and as an individual, Miller, the record shows, pursued her original lawsuit against him to final judgment without ever amending her action to include him as an individual defendant.

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Bluebook (online)
770 P.2d 215, 1989 Wyo. LEXIS 63, 1989 WL 19494, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wyoming-national-bank-of-gillette-v-davis-wyo-1989.