Estate of Ludington v. Jaber
2011 WL 1304470
Supreme Court of The Virgin Is...2011Background
- Estate of Ludington sought a writ of execution on Jaber’s interest in Abdallah, a pending lawsuit against a third party.
- Superior Court denied the motion, holding Jaber’s interest did not constitute executory personal property and was not subject to judicial sale.
- Estate contends Virgin Islands law permits execution on personal property, including things in action, and that a pending lawsuit interest is executable.
- Stated judgment in favor of the Estate for $8,000,000.50 against Jaber arose from a note and mortgage; liquidation efforts targeted Jaber’s Abdallah interest.
- This appeal challenges whether the trial court erred in prohibiting a marshal’s sale of Jaber’s Abdallah interest; the Supreme Court reverses.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether a judgment debtor’s interest in a pending lawsuit is subject to execution | Estate: interest is a thing in action and executable | Jaber: interest is constitutionally protected but not subject to execution | Yes; Jaber’s interest is subject to marshal sale |
Key Cases Cited
- Bergen v. F/V St. Patrick, 686 F.Supp. 786 (D. Alaska 1988) (recognizes sale of a thing in action via public auction)
- Craft v. Craft, 757 So.2d 571 (Fla. Dist. Ct. App. 2000) (permits chose in action to be sold; pending lawsuit included)
- Citizens Nat’l Bank v. Dixieland Forest Prods., LLC, 935 So.2d 1004 (Miss. 2006) (chose in action value determined at execution sale)
- Applied Med. Techs. v. Eames, 44 P.3d 699 (Utah 2002) (recognizes executability of things in action)
- Denham v. Farmers Ins., Co., 213 Cal. App. 3d 1061 (Cal. App. 3d 1989) (treats chose in action under similar principles)
- Prodigy Ctrs./Atlanta v. T-C Assocs., 269 Ga. 522 (1998) (holds chose in action may not be uniformly excluded from execution)
- Lakeshore Motor Freight Co. v. Glenway Indus., 2 Ohio App.3d 8 (Ohio App. 1981) (recognizes transferability of chose in action via sale)
- Logan v. Zimmerman Brush Co., 455 U.S. 422 (1982) (due process protections before depriving interests in ongoing actions)