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Cecilia M Lewis Et Vir v. Ray C Debord Et Ux
356 P.3d 314
Ariz.
2015
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Background

  • In 2003 the Lewises obtained a money judgment against the MacKeans and recorded a certified copy in Pima County in 2006 and a renewal in 2008. Neither filing included the separate information statement required by A.R.S. §§ 33-961(C) and 33-967(A).
  • In 2008 Karen MacKean transferred the property to Sonomex, LLC; in 2012 the Debords purchased the property from Sonomex and recorded fee title.
  • After the Debords bought the property the Lewises sought to foreclose their judgment lien; the Debords moved for summary judgment saying the lien was invalid because the Lewises failed to file the required information statement.
  • The superior court granted summary judgment for the Debords; the court of appeals affirmed but held the omission only affected priority as to subsequent purchasers, not validity.
  • The Arizona Supreme Court granted review to decide (1) whether failure to file the information statement invalidates a recorded lien and (2) whether the priority consequence in § 33-967(D) applies against subsequent purchasers holding fee title.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether failing to attach the § 33-967 information statement to a certified recorded judgment invalidates the judgment lien Lewis: Recording the certified judgment under § 33-961 creates a valid lien; failure to file the information statement affects only priority, not validity Debord: Failure to attach the information statement renders the lien invalid as to the property The court held the lien is valid when the certified judgment is recorded under § 33-961(A); omission of the information statement does not invalidate the lien but affects priority against competing interests
Whether § 33-967(D)’s reference to “priority” deprives a subsequent purchaser of fee title (with record/constructive notice) of taking property subject to an existing judgment recorded without the information statement Lewis: “Priority” governs ranking among competing creditors (perfection), not the rule that subsequent purchasers with notice take subject to recorded liens Debord: The information-statement requirement creates a narrow exception: a later purchaser who records fee title before the information statement has priority over the lien The court held § 33-967(D) addresses priority among creditors (perfection) and does not displace the default rule that a purchaser with constructive or actual notice of a recorded judgment takes subject to the lien

Key Cases Cited

  • Sysco Ariz., Inc. v. Hoskins, 235 Ariz. 164 (discussing nature and effect of judgment liens)
  • BMO Harris Bank, N.A. v. Wildwood Creek Ranch, LLC, 236 Ariz. 363 (statutory interpretation de novo; prospective statutory amendment not controlling)
  • Lewis v. Debord, 236 Ariz. 57 (appellate decision below addressing priority issue)
  • Collins v. Stockwell, 137 Ariz. 416 (recorded lien gives constructive notice and should alert record-searchers)
  • Estate of McGill ex rel. McGill v. Albrecht, 203 Ariz. 525 (courts decline to read statutory requirements into a statute when legislature used explicit language elsewhere)
  • Freeman v. Wintroath Pumps, 13 Ariz. App. 182 (duration and effect of judgment liens)
Read the full case

Case Details

Case Name: Cecilia M Lewis Et Vir v. Ray C Debord Et Ux
Court Name: Arizona Supreme Court
Date Published: Aug 25, 2015
Citation: 356 P.3d 314
Docket Number: CV-14-0293-PR
Court Abbreviation: Ariz.