Dreamers, LLC v. Don's Lumber & Hardware, Inc.
2011 Ky. LEXIS 136
| Ky. | 2011Background
- The Dreamers, LLC contracted to build a home for Glenda Hoffman; Don’s Lumber supplied materials and claimed a lien.
- Dreamers failed to pay for the materials; summary judgment awarded to Don’s Lumber and property sale ordered.
- Dreamers sought relief via CR 59.05 and writs, but ultimately a sale date was set and a supersedeas bond was not posted.
- Dreamers paid the full judgment of $48,309.95 on the sale date to stop the sale, rather than pursuing supersedeas.
- Court of Appeals dismissed the direct appeal as moot without addressing the underlying issues; petition for discretionary review followed.
- This Court held that payment in full does not extinguish the right to appeal absent clear evidence of settlement, and remanded for merits.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Does paying the full judgment extinguish the right to appeal when no clear settlement exists? | Dreamers: payment does not waive appeal rights absent clear settlement. | Don’s Lumber: payment signals settlement, waiving appeal. | No; payment alone does not extinguish appeal rights without clear settlement. |
| Was there clear evidence of a settlement or compromise that waived the appeal? | Dreamers: evidence is equivocal; no decisive settlement shown. | Don’s Lumber: receipt and actions show settlement intent. | Not clear and decisive evidence of settlement; no waiver found. |
| Did the Court of Appeals err by dismissing the direct appeal as moot without resolving the argued issues? | Dreamers: merits must be reached; payment did not moot them. | Don’s Lumber: mootness justified after payment. | Court of Appeals erred; remanded to address merits. |
Key Cases Cited
- Elk Horn Coal Corp. v. Cheyenne Resources, Inc., 163 S.W.3d 408 (Ky. 2005) (supersedeas not required for appeal; failure to post bond allows execution)
- Madden v. Madden, 169 Ky. 367, 183 S.W. 931 (Ky. 1916) (payment in lieu of supersedeas can occur; no automatic waiver)
- Stairs v. Riley, 306 Ky. 645, 208 S.W.2d 961 (Ky. 1948) (clear settlement may extinguish rights; mere payment not enough)
- Mercer v. Federal Land Bank of Louisville, 300 Ky. 311, 188 S.W.2d 489 (Ky. 1945) (right of appeal is favored and not waived without clear grounds)
- Hundley v. Hundley, 291 S.W.2d 544 (Ky. 1956) (right of appeal will not be waived without clear grounds)
- Louisville/Jefferson County Metro Gov’t v. TDC Grp., LLC, 283 S.W.3d 657 (Ky. 2009) (avoid constitutional ruling if non-constitutional grounds exist)