Lead Opinion
Plaintiff obtained a judgment against defendant in the United States Bankruptcy Court for the District of New Mexico (the bankruptcy judgment). Eleven years later, plaintiff filed the bankruptcy judgment in Oregon pursuant to Oregon’s Uniform Enforcement of Foreign Judgments Act (UEFJA), ORS 24.105 to 24.175. Defendant moved to have that judgment set aside, contending that, among other things, the bankruptcy judgment had become unenforceable in New Mexico because of the lapse of time. The trial court denied the motion, and defendant appealed, asserting three reasons why the trial court erred. We affirm.
On appeal, defendant asserts three arguments, which are different from the arguments he asserted below. First, he contends that plaintiff did not prove that it has any corporate existence, that its actions were lawfully authorized by a proper resolution of its board of directors or otherwise, or that it authorized Montgomery to file this proceeding on its behalf. He asserts that plaintiffs corporate status was revoked “beyond appeal” in New Mexico.
Second, defendant argues that, because the time for executing on the bankruptcy judgment in New Mexico has expired, that judgment is not entitled to full faith and credit and thus was not a proper judgment to file under the UEFJA. He further contends that, as a corporation whose corporate status has been “revoked,” plaintiff could not lawfully take action to revive, and thereafter enforce, the bankruptcy judgment.
Finally, defendant contends that plaintiffs failure to notify the Oregon court of facts concerning the “status of the judgment in New Mexico,” its corporate status, and its failure to take lawful corporate action to authorize the filing of the judgment in Oregon amounted to extrinsic fraud. That fraud, defendant asserts, is grounds for setting aside a judgment pursuant to ORCP 71 B(l)(c) or ORCP 71 C.
As we discuss in some detail, we do not consider defendant’s first two arguments because he did not preserve them below. We also do not consider one of the subparts of his third argument because it, too, was not preserved. As for the remaining subparts of his third argument, we reject those because they are based on a legally incorrect premise. Accordingly, we affirm the trial court’s order denying defendant’s motion to set aside the bankruptcy court judgment.
With those considerations in mind, we turn to defendant’s arguments on appeal, beginning with his first argument. Defendant did not contend below, as he does here, that plaintiff failed to observe the corporate formalities necessary to authorize the filing of the bankruptcy judgment in Oregon. Rather, defendant limited his corporate authority argument to the contention that plaintiff lacked the legal capacity to file the judgment in Oregon because the State of New Mexico had revoked its corporate status. Further, defendant made that argument not as a separate basis for relief from the judgment or to have that judgment set aside, but solely as part of his contention that plaintiff had perpetrated a fraud on the court by not informing the court that its corporate status had been revoked. Defendant renews that argument as part of his third argument (relating to fraud) on appeal, and we address it later in this opinion. But his first argument in this court is different — that the judgment should be set aside because plaintiff did not prove that it has any corporate existence, that its actions were lawfully authorized by a proper resolution of its board of directors or otherwise, or that it authorized Montgomery to file this proceeding on its behalf.
Plaintiff did not respond to defendant’s motion below. Had defendant argued to the trial court that plaintiff had failed to produce evidence that it had observed the corporate formalities necessary to authorize the filing of the bankruptcy judgment in Oregon, plaintiff might have filed a response presenting evidence and argument on that issue. Neither plaintiff nor the trial court had the benefit of considering and responding to the argument that defendant now makes.
Before discussing whether defendant preserved his second argument — that the bankruptcy judgment expired under New Mexico law and therefore is not entitled to full faith and credit — it is worth reviewing briefly some of the key provisions of the UEFJA, as adopted in Oregon. Under that act, a properly authenticated “foreign judgment” can be filed in an Oregon circuit court. ORS 24.115(1). A “foreign judgment” is “any judgment, decree or order of a court of the United States or of any other court which is entitled to full faith and credit in this state.” ORS 24.105. Once filed, the judgment, in effect, becomes a judgment of the court in which it is filed and “has the same effect and is subject to the same procedures, defenses and proceedings for reopening, vacating or staying as a judgment of the circuit court in which the foreign judgment is filed, and may be enforced or satisfied in like manner.” ORS 24.115(3). Promptly after filing the judgment, the judgment creditor must notify the judgment debtor by mail that the judgment has been filed. ORS 24.125(2). Five days must elapse from the time of filing the judgment before any process to execute on the judgment may begin. ORS 24.125(3).
As mentioned above, after plaintiff filed the bankruptcy judgment and served defendant with notice, defendant moved to set aside that judgment. In support of his motion, defendant invoked ORCP 71 B(l)(d) and (e) and 71C. ORCP 71 B(l)(d) and (e) authorize the court, “[o]n motion and upon such terms as are just,” to “relieve a party * * * from a judgment” if “the judgment is void” or if “the judgment has been satisfied, released, or discharged * * *.” ORCP 71C
Although defendant titled his motion in the trial court as a motion to set aside the filing of the foreign judgment, the substance of the motion was that the judgment itself should be set aside. That is clear from the first heading of his motion, in which he characterized it as a “Motion to Set Aside Judgment,” as well as his argument relying on ORCP 71, which entitles a party to relief from a judgment under certain circumstances.
On appeal, however, defendant’s argument has changed significantly. Here, he contends that the judgment was not entitled to full faith and credit in Oregon and therefore was not a “foreign judgment” that could be filed in Oregon under the UEFJA. The grounds for that argument are the same as those on which his argument rested below— i.e., that the judgment was not valid and enforceable in New Mexico. Defendant does not, however, renew on appeal his argument that he is entitled to relief from the judgment under ORCP 71B because the judgment is unenforceable.
Whether a judgment debtor, in the case of a foreign judgment that is unenforceable in the state of its issuance, is entitled to relief from that judgment once it has been filed in Oregon (defendant’s argument below) is a separate question from whether that same judgment is entitled to full faith and credit and qualifies in the first instance for filing in this state (defendant’s argument on appeal). The former question involves consideration of ORCP 71 B and C and is properly raised by motion. The latter, particularly in the case of the judgment of a federal court, involves a host of other considerations,
We turn to defendant’s final argument, that he was entitled to relief from the
Defendant asserts that plaintiff “had a clear duty” when it filed the bankruptcy judgment “to advise the [c]ourt of the status of the judgment in New Mexico.” We interpret that argument, in light of defendant’s earlier arguments, to mean that plaintiff had a duty to advise the court that the judgment was not enforceable in New Mexico. We conclude, however, that the premise of that argument — that the judgment was unenforceable — is incorrect.
Citing two provisions of New Mexico law, plaintiff contends that the bankruptcy judgment still may be enforced in New Mexico. First, plaintiff argues that NMSA § 37-1-2 allows 14 years to file an “[a]ction[ ] founded upon any judgment” in New Mexico.
The first statute cited by plaintiff was construed in Galef v. Buena Vista Dairy,
The statute considered in Galef applies not only to actions on judgments of any court of record of any state but also to actions on judgments of the federal courts. NMSA § 37-1-2. New Mexico’s domestication process is the means by which New Mexico recognizes federal court judgments. Walter E. Heller Western, Inc. v. Ditto,
To reiterate, then, a federal judgment must be domesticated in New Mexico before any enforcement action can occur; further, a party has 14 years to domesticate a foreign judgment in New Mexico and then, depending on the applicable statute of limitations, some period of time thereafter to enforce the judgment. Because the time had not yet elapsed for plaintiff to domesticate the bankruptcy judgment in New Mexico state court at the time plaintiff filed that judgment in Oregon, the judgment was still enforceable in New Mexico. Accordingly, we reject defendant’s assertion that the judgment was unenforceable in New Mexico because seven years had elapsed since its entry.
Defendant replies that the judgment, even if enforceable in New Mexico, is not enforceable in Oregon because ORS 12.070 limits the time to bring an action to enforce a judgment to 10 years from the date of the judgment.
We do not address that argument, however. Defendant did not raise ORS 12.070 as a defense in the trial court or even mention it in his opening brief in this court. Accordingly, he failed to preserve the argument and present it for our consideration on appeal. ORAP 5.45(1). Although “parties may not prevent a court from noticing and invoking an applicable statute by relying only on other sources of law,” Miller v. Water Wonderland Improvement District,
Under NMSA § 53-16-24, the fact of a corporation’s dissolution does not bar the corporation from pursuing remedies for claims or rights that existed prior to dissolution. See Smith v. Halliburton Co.,
We conclude that the New Mexico statute’s silence concerning dissolved corporations whose corporate status was revoked demonstrates no legislative intent to treat that class of corporations differently. On its face, NMSA § 53-16-24 applies to the dissolution of all corporations, without making an exception for corporations whose status has been revoked. Although defendant would have us read such an exception into New Mexico’s statute, he cites no New Mexico authority authorizing us to do so. This court does not read exceptions into Oregon statutes, ORS 174.010; Wheaton v. Kulongoski,
We do not address defendant’s final argument, that plaintiff perpetrated a fraud on the court by not informing it of facts demonstrating that it failed to take “lawful corporate action” to file the bankruptcy judgment in Oregon. Again, even assuming that such a failure would amount to fraud as contemplated by ORCP 71 C, defendant failed to make the argument below. Instead, he contended only that plaintiff perpetrated a fraud on the court by failing to inform it that its corporate status had been revoked.
Affirmed.
Notes
The trial court followed its order with the entry of a “limited judgment” that “ordered and adjudged that Defendant’s Motion to Set Aside Foreign Judgment is denied * * Because the order denying defendant’s motion is appealable, Montoya v. Housing Authority of Portland,
Defendant also asserts that the earlier lawsuit brought by attorney Montgomery resulted in satisfaction of “at least 40% of the judgment sought to be registered” and that portion of the judgment may no longer be subject to enforcement by plaintiff. Beyond making that assertion, however, defendant does not develop that argument or explain how plaintiffs failure to bring that partial satisfaction to the court’s attention amounts to extrinsic fraud sufficient to set aside the bankruptcy judgment. See Geranghadr v. Entagh,
It appears that defendant is a former director of plaintiff. Neither party raises any argument or points to anything in the record suggesting that defendant is not among those authorized to challenge plaintiffs capacity or power to act. See OES 60.084 (limiting circumstances in which a corporation’s power to act may be challenged); NMSA § 53-11-6 (same). Accordingly, we do not consider that issue.
One such consideration is whether “full faith and credit” is an appropriate requirement for the filing of a federal judgment under the UEFJA. “Full faith and credit,” at least as a matter of federal constitutional and statutory law, refers to the effect to be given to foreign state court, not federal court, judgments. See Semtek Int’l Inc. v. Lockheed Martin Corp.,
Although ORS 24.115(3) provides that a judgment, once filed, is “subject to the same procedures, defenses and proceedings for reopening, vacating or staying as a judgment of the circuit court in which the foreign judgment is filed,” the UEFJA contains no provision by which the filing of the foreign judgment can be set aside. A contention that the filing of a foreign judgment was improper does not fit within the context of a motion for relief from a judgment under ORCP 71B. That rule does not address challenges to the filing of a judgment but asks only whether the judgment debtor is entitled to relief from the judgment itself. The full faith and credit question involves whether the judgment was a proper subject for filing under the UEFJA in the first place — that is, whether it was a “foreign judgment” as defined in ORS 24.105. A challenge to the filing itself, an act performed by the circuit court clerk, arguably would more appropriately be brought by means of a writ of review proceeding, ORS 34.010 to 34.100, a declaratory judgment proceeding, ORS 28.010 to 28.160, or a writ of mandamus proceeding, ORS 34.105 to 34.240, depending on whether the nature of the clerk’s action is quasi-judicial (writ of review), ministerial or clerical (declaratory judgment), or nondiscretionary governmental action for which there is no adequate and speedy remedy available at law (mandamus). See generally, e.g., State ex rel School Dist. 13 v. Columbia Co.,
For purposes of this discussion only, we accept defendant’s assertion that the enforceability in New Mexico of a judgment from a federal court sitting in New Mexico is a prerequisite to filing that judgment in Oregon under the UEFJA. FRCP 69(a) allows judgment creditors to execute on federal judgments in accordance with the practices and procedures for executing judgments issued by courts of the state in which the district court sits. Peacock v. Thomas,
NMSA § 37-1-2 provides:
“Actions founded upon any judgment of any court of the state may be brought within fourteen years from the date of the judgment, and not afterward. Actions founded upon any judgment of any court of record of any other state or territory of the United States, or of the federal courts, may be brought within the applicable period of limitation within that jurisdiction, not to exceed fourteen years from the date of the judgment, and not afterward.”
NMSA § 53-16-24 provides:
“The dissolution of a corporation does not take away or impair any remedy available to or against the corporation, its directors, officers or shareholders, for any right or claim existing, or any liability incurred, prior to the dissolution and any such action or proceeding by or against the corporation may be prosecuted or defended by the corporation in its corporate name. The shareholders, directors and officers may take such corporate or other action as appropriate to protect the remedy, right or claim.”
ORS 12.070 provides, in part:
“(1) An action upon a judgment or decree of any court of the United States
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“shall be commenced within 10 years.”
Former ORS 24.020 (1977), repealed by Or Laws 1979, ch 577, § 8, provided:
“On application made within the time allowed for bringing an action on a foreign judgment in this state, any person entitled to bring such action may have a foreign judgment registered in any court of this state having jurisdiction of such an action.”
We express no opinion regarding whether, in a proceeding to domesticate a foreign judgment under ORS 24.105 to 24.175, the filing of the judgment could be set aside because any enforcement action would be time barred under Oregon law. We are aware that in Hatch v. Hatch,
Concurrence Opinion
concurring.
I concur with the majority opinion in this case and write separately only to discuss why I believe that the preservation issue regarding defendant’s ORS 12.070 argument is not controlled by the Supreme Court’s holding in Miller v. Water Wonderland Improvement District,
Defendant filed his motion to stay the enforcement of a foreign judgment from the United States Bankruptcy Court for the District of New Mexico registered by plaintiff in Oregon pursuant to ORS 24.105 to 24.1175, otherwise known as the Uniform Enforcement of Foreign Judgments Act. ORS 24.135(2) provides the grounds upon which enforcement of a registered foreign judgment can be stayed, including “any ground upon which enforcement of a judgment of any court of any county of this state would be stayed [.]” One potential ground for staying the enforcement of a foreign judgment is found in ORS 12.070(1), which provides that “[a]n action upon a judgment or decree of any court of the United States, or of any state or territory within the United States * * * shall be commenced within 10 years.” The foreign judgment in this case originated in March 1994; it was not registered in Oregon until 2005, more than 10 years later. However, defendant’s motion in the trial court did not rely on ORS 12.070. Rather, he argued that the Oregon court should set aside the judgment “because it is no longer a valid and enforceable judgment in the jurisdiction in which it originated,” relying on a New Mexico statute providing for a seven-year period of viability after entry.
On appeal, defendant makes a single assignment of error in which he contends that the trial court erred in denying his motion,
However, because the issue on appeal involves a potentially applicable statute, the Supreme Court’s decision in Miller lurks in the background. In Miller, the court held that a particular statute, raised for the first time on review, governed the issue on appeal even though the statute was never pleaded or argued in any manner in the trial court or this court. The court reasoned, “[T]he parties may not prevent a court from noticing and invoking an applicable statute by relying only on other sources of law.”
Miller, however, in my view, is distinguishable. In Miller, the plaintiff filed a declaratory judgment action seeking to inspect and copy records of a water district corporation established under ORS chapter 554. In the trial court, the plaintiff argued that his right to inspect the records arose under the Public Records Act, ORS 192.410 to 192.505. The trial court held that the defendant was not a “public body” for purposes of ORS 192.410(3), because it was a nonprofit public corporation created pursuant to ORS chapter 554, rather than a “special district” under ORS 192.410(3). We affirmed the judgment of the trial court, characterizing the only issue before us as whether the plaintiff had a right to inspect the records under the Public Records Act. Miller v. Water Wonderland Improvement District,
This case differs from Miller in that defendant never sought to stay enforcement of the judgment pursuant to Oregon law in his motion filed in the trial court. Rather, as described above, defendant relied entirely on the assertion that the judgment was unenforceable under a New Mexico statute. That difference brings into play the distinctions drawn for preservation purposes by courts between an issue, the identification of a source of law for a claimed position, and the making of a particular argument. Those distinctions were first drawn by the Supreme Court in State v. Hitz,
It is often difficult to characterize a claim made for the first time on appeal as raising a new issue, identifying a new source for a claimed position, or making a different argument than was made below.
Regardless, I am persuaded that, under either calculus, defendant did not preserve the issue of whether the New Mexico judgment is enforceable under ORS 12.070. Clearly, under the Wyatt test, the trial court had no opportunity to rule on that issue. If the Hitz test is applied, then, I would hold that the broader legal issue raised by defendant’s motion in the trial court (whether the judgment is enforceable under New Mexico law) is not the same issue that he raises on appeal (whether defendant is entitled to have the enforcement of the New Mexico judgment stayed under ORS 12.070).
I concur.
See, e.g., Gadda v. Gadda,
