Ayer v. Hemingway, Hemingway Construction and Harris
73 A.3d 673
Vt.2013Background
- 2001 default judgment against Hemingway for $6,830 plus $179.66 costs, $11,400 total due with 12% interest; no payment schedule specified.
- 2006 amended order established a payment plan and reduced interest to 6% unless default, with 12% if default; order described as an amended judgment for the paid debt.
- 2008 Notice of Judgment Lien recorded against Hemingway’s Alburgh real property for $11,400.
- 2010 Harris action: Hemingway conveyed property to Harris; stipulation/judgment order awarded $11,400 plus 12% interest, and required Hemingway to keep current per a 2010 payment agreement with Ayer.
- 2011 foreclosure complaint filed; trial court held the 2001 judgment lien expired under 12 V.S.A. § 2903(a) after eight years; plaintiffs appealed.
- Court affirmed summary judgment for Harris, rejecting renewal of the 2001 judgment by the 2006 order or treating the 2006 order as a new final judgment for limitations purposes.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the 2001 judgment was renewed within eight years | A renewal occurred via the 2006 order | Renewal required a new independent suit, not a motion | No; renewal requires a new independent suit, not a motion or amended order |
| Whether the 2006 order is a new final judgment for limitations purposes | The 2006 order renewed the judgment and set new terms | The 2006 order merely set a payment plan for the 2001 debt | The 2006 order is not a new final judgment for statute of limitations purposes; the 2001 judgment ended litigation; lien expired |
| Whether the judgment lien could be foreclosed given expiration | Lien continued or revived under 12 V.S.A. § 506 | Lien expired eight years after final judgment | Lien expired; foreclose not allowed |
| Whether a default judgment should have been entered | Hemingway failed to file a verified answer, warranting default | Trial court had discretion; statute of limitations may bar default relief | Court had discretion; did not enter default due to expired lien |
Key Cases Cited
- Nelson v. Russo, 184 Vt. 550 (2008 VT 66) (renewal requires new independent suit to revive judgment)
- Johnston v. Wilkins, 175 Vt. 567 (2003 VT 56) (stipulated settlement can have preclusive effect as final judgment)
- Iannarone v. Limoggio, 190 Vt. 272 (2011 VT 91) (definition of judgment for finality/appealability)
- Reed v. Rosenfield, 115 Vt. 76 (1947) (prevent stale claims; purpose of limitations on enforcement)