Prime Lending II, LLC v. Trolley's Real Estate Holdings, LLC
304 P.3d 683
| Kan. Ct. App. | 2013Background
- Prime Lending II, LLC foreclosed a mortgage on real property in Overland Park, Kansas.
- Defendants included Aaron Buerge, Trolley’s Real Estate Holdings, LLC, Trolley’s LLC, Trolley’s Overland Park, LLC, Trolley’s Bar and Grille, LLC, and Ryan G. MacDonald; Blue Moose, O.P., LLC was later added to foreclose its leasehold.
- A summary judgment was granted in Prime Lending’s favor; a sheriff’s sale was ordered and Prime Lending bid $2,200,000, becoming the high bidder.
- The trial court entered a memorandum decision (Aug. 24, 2011) and a journal entry of foreclosure (Aug. 31, 2011); sale was conducted on Sept. 29, 2011, with sale confirmed on Dec. 16, 2011.
- Prime Lending moved to certify the Aug. 24, 2011 memorandum decision as a final judgment under K.S.A. 2012 Supp. 60-254(b) on May 14, 2012; the trial court granted retroactive certification on June 19, 2012.
- Trolleys challenge whether the Aug. 24 memorandum decision or Aug. 31 journal entry was a final judgment under 60-254(b), and argue the retroactive certification was improper, rendering the appeal interlocutory.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Aug. 24 memorandum decision or Aug. 31 judgment was final under 60-254(b) | Prime Lending contends a final judgment existed. | Trolleys argue lack of express no-delay certification. | Neither judgment satisfied 60-254(b) express findings; not final. |
| Effect of retroactive 60-254(b) certification on appeal jurisdiction | Certification retroactively made final should allow appeal. | Retroactive certification improper; triggers lack of jurisdiction. | Appellate jurisdiction lacking; interlocutory appeal dismissed. |
| Impact of partial judgment without final disposition on later proceedings | Foreclosure continues to be final as to the property. | Claims against other parties impeded; need final disposition. | Partial judgment without proper 60-254(b) certification remains interlocutory. |
Key Cases Cited
- City of Salina v. Star B, Inc., 241 Kan. 692 (Kan. 1987) (requires express no-delay determination for finality under 54(b))
- Dennis v. Southeastern Kansas Gas Co., 227 Kan. 872 (Kan. 1980) (need express no-delay finding for finality)
- Fredricks v. Foltz, 221 Kan. 28 (Kan. 1976) (same express finality requirement)
- Henderson v. Hassur, 1 Kan. App. 2d 103 (Kan. App. 1977) (express determination required for finality)
- D & H Marketers, Inc. v. Freedom Oil & Gas, Inc., 744 F.2d 1443 (10th Cir. 1984) (federal Rule 54(b) same finality standard)