2012 COA 96
Colo. Ct. App.2012Background
- Goodman filed an Eagle County case against WP Mountain Properties, LLC seeking declaratory judgment and breach of contract; a default judgment was entered December 4, 2008 for $152,289.98 with 8% interest,
- A transcript of the December 2008 judgment was recorded and encumbered WPMP’s Grand County property, including Lot 13 in Lakota Park,
- Winter Quarters, LLC purchased Lot 13 on January 9, 2009, with Capital West National Bank taking a deed of trust recorded January 28, 2009,
- WPMP moved to set aside the default judgment on April 3, 2009; Goodman objected, and the Eagle County court granted the motion to set aside,
- The Colorado Supreme Court granted Goodman's request for relief in June 2010, reinstating the default judgment and directing a determination of attorney fees,
- An amended judgment was entered June 17, 2010, and Goodman recorded a July 1, 2010 amended-judgment lien stating the original judgment amount plus substantial post-judgment interest and fees,
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the July 2010 amended judgment lien relates back to the December 2008 judgment lien | Goodman argues the later lien relates back and should priority over Capital West | Capital West contends there was no notice or relation back to the December 2008 lien | No; amended lien did not relate back; Capital West remains an innocent third party |
| Whether Capital West had notice of the subsequent litigation affecting the lien amount | Goodman asserts Capital West was on notice through counsel and monitoring | Capital West had no actual or inquiry notice of the later litigation before its purchase | Capital West had no notice; it was an innocent purchaser for priority purposes |
| How the race-notice system under the Recording Act affects priority between the December 2008 lien and the July 2010 amended lien | Amended lien should have priority over Capital West’s deed due to later judgment | Race-notice requires lack of notice; lack of knowledge preserves priority for the deed of trust | Amended lien did not override Capital West; Goodman’s priority limited to the December 2008 lien amount |
Key Cases Cited
- Premier Bank v. Bd. of County Comm'rs, 214 P.3d 574 (Colo.App. 2009) (race-notice certainty; buyer protected if properly recorded)
- Routt Cnty. Mining Co. v. Stutheit, 72 P.2d 692 (Colo. 1937) (purchasers stand on record as of their acquisition date)
- Tilton v. Cofteld, 98 U.S. 163 (1879) (recording doctrine; knowledge not imputed for matter not in record)
- In re Marriage of Barber, 811 P.2d 451 (Colo.App. 1991) (finality of judgment; appeal period considerations)
- CJ, Perdew v. Perdew, 64 P.2d 602 (Colo. 1936) (nunc pro tunc effects; third-party rights unaffected)
- Martinez v. Affordable Housing Network, Inc., 123 P.3d 1201 (Colo. 2005) (notice concepts; inquiry notice doctrine)