LEWIS S. ROBINSON, III, еt al., Plaintiffs and Appellants, v. FIRST WYOMING BANK, N.A., JACKSON HOLE, a Wyoming corporation, and FIRST WYOMING BANCORPORATION, a Wyoming corporation, Defendants and Respondents.
No. 95-175.
Supreme Court of Montana
December 19, 1995
274 Mont. 307 | 909 P.2d 689 | 52 St. Rep. 1245
Submitted on Briefs November 9, 1995.
For Respondents: Malcolm H. Goodrich, Crowley, Haughey, Hanson, Toole & Dietrich, Billings.
This is an appeal of an order of the Eighteenth Judicial District Court, Gallatin County, denying Lewis S. and Linda T. Robinsons’ motion to quash a writ of execution issued on a Wyoming judgment
We restate the issues as follows:
1. Are the Robinsons barred from appealing the District Court‘s April 14, 1994, order denying their motion to quash the bank‘s writ of execution?
2. Did the District Court err in ruling that
3. Did the District Court err in failing to determine that the bank should have complied with the Uniform Enforcement of Foreign Judgments Act when it registered the Wyoming consent judgment in Montana state court?
4. Did the District Court err in granting summary judgment in favor of the bank on the Robinsons’ declaratory judgment action?
FACTS
The Robinsons executed a promissory note in favor of the bank on March 22, 1985, in the amount of $353,161. On August 30, 1985, the Robinsons gave the bank a mortgage on property in the Gallatin Valley (the property) as security for the promissory note. The mortgage had an effective date of March 22, 1985.
In the mid-1980s, the Robinsons and the bank became involved in litigation in Wyoming over a variety of issues arising from the bank‘s treatment of the Robinsons. The Robinsons sued the bank for fraud, breach of contract, breach of fiduciary duty, RICO, negligence, and punitive damages. The bank counterclaimed against the Robinsons for payment of the promissory note together with other outstanding obligations. The bank and the Robinsons entered into a judgment by stipulated consent in which the Robinsons agreed to pay the bank $175,000. This payment was intended to completely replace the amount previously owed under the promissory note. The judgment on this amount was entered in the Wyoming Federal Court on December 3, 1987. It was not appealed by the Robinsons.
The Wyoming consent judgment was registered in the United States District Court for Montana on August 1, 1989, pursuant to
On February 2, 1994, the Robinsons filed a completely separate action against the bank seеking to have the bank‘s mortgage declared null and void. The bank filed a motion with the District Court to dismiss this action. Later, the bank moved to convert their motion to dismiss to a motion for summary judgment.
On April 7, 1994, the Robinsons moved to consolidate the two actions, which the court did on May 6. On April 14, 1994, the court denied the Robinsons’ motion to quash the writ and ruled that the filing of the December 3, 1987, Wyoming judgment with the Montana Federal Court on August 1, 1989, was the equivalent of filing a new judgment. In its conclusion, the court determined that the six years for issuing a writ of execution on that judgment ran from August 1, 1989.
On May 2, 1994, the Robinsons moved the court to reconsider its April 14 order. On May 6, 1994, when the court had entered the order consolidating the twо cases, it also noted that the bank‘s motion to dismiss would be converted to a motion for summary judgment. On June 17, 1994, the court denied Robinsons’ motion for reconsideration of its April 14 order.
The court entered an order granting summary judgment in favor of the bank and against the Robinsons on February 2, 1995. From both the April 14, 1994, and the February 2, 1995, orders, the Robinsons appeal.
ISSUE 1
Are the Robinsons barred from appealing the District Court‘s April 14, 1994, order denying their motion to quash the bank‘s writ of execution?
The bank contends that the April 14, 1994, order was a post-judgment order and a “special” order capable of appeal under
The bank asserts that the order was entered prior to the consolidation of the actions and cannot be viewed as an interlocutory order in the consolidated proceedings. Other supreme courts, however, have held that once cases are cоnsolidated they are one for all appellate purposes. Mallin v. Farmers Ins. Exchange (Nev. 1990), 797 P.2d 978, 980; State v. District Court of Second Judicial District (Wyo. 1963), 387 P.2d 550. In concurring with this principle, the Ninth Circuit Court said:
In our view, the best approach is to permit the appeal only when there is a final judgment that resolves all of the consolidated actions unless a 54(b) certification is entered by the district court. This leaves the discretion with the court which is best able to evaluate the affect [sic] of an interim appeal on the parties and on the expeditious resolution of the entire action.
Huene v. United States (9th Cir. 1984), 743 F.2d 703, 705 (alteration in original).
In the present case, the order in question was issued on April 14, 1994, which gave the Robinsons until May 14, 1994, in which to file an appeal with this Court. The actions were consolidated on May 6, 1994. Thus, the consolidation postponed the time for appeal of the order to that of the court‘s final judgment in the consolidated actions. We therefore hold that the substance of the April 14, 1994, order is properly before this Court.
ISSUE 2
Did the District Court err in ruling that
The Wyoming federal court judgment was registered in Montana federal court pursuant to
“A judgment so registered shall have the same effect as a judgment of the district court of the district where registerеd and may be enforced in like manner.”
The District Court concluded that registration under this statute created a new judgment so that the date of the Wyoming judgment for purposes of the issuance of a writ of execution is the date that the judgment was registered in Montana federal court. The Robinsons disagree, contending that the plain language of
The District Court‘s conclusion was in response to a question of law. Accordingly, we will review questions of law to determine if the district court‘s interpretation is correct. Fаrmers Plant Aid, Inc. v. Huggins (1994), 266 Mont. 249, 252, 879 P.2d 1173, 1175. Federal courts have ruled inconsistently on whether the registration of a judgment pursuant to
The Ninth Circuit Court, in Marx v. Go Publishing Co. (9th Cir. 1983), 721 F.2d 1272, ruled that
When the Wyoming judgment was registered in Montana federal court, Montana had not yet adopted the Uniform Enforcement of Foreign Judgments Act. Section
While the Eighth Circuit, in Stanford, held that registration under
It follows from this that the Missouri ten year period of limitations, provide by
V.A.M.S. § 516.350 , and not the Mississippi seven year period, applies so far as enforcement is concerned, and that execution proceedings by the plaintiff within the Missouri period, and otherwise proper, are not subject to dismissal.
In Stanford, the Court applied the Missouri ten year period of limitations which allowed the enforcement of the judgment not only from the date of registration, but also from the date the judgment was originally docketed in Mississippi. After discussing the number of questions that their decision would leave unanswered, the Court in Stanford limited their holding:
The presence of these and undoubtedly many other questions prompts us to emphasize that the conclusion we reach here is one having application to the fact situation of this case. We do not now go so far as to say that registration effects a new judgment in the registration court for every conceivable purpose; neither do we say that it fails to do so for any particular purpose.
The Fifth Circuit recognized in Kellum that Stanford did not hold that registration created a brand new judgment to be enforced as if there had never been a prior judgment in the case. Kellum, 523 F.2d at 1289. The Ninth Circuit, in Matanuska Valley Lines, Inc. v. Molitor (1966), 365 F.2d 358, also found that the rule in Stanford was limited and stated “the holding of the Eighth Circuit court relates to the effect of valid registration upon subsequent enforcement proceedings.” Matanuska, 365 F.2d at 360. In this case, there is no issue as to valid registration of the Wyoming federal judgment in the Montana federal сourt because the judgment was still a “live” judgment under the laws of Wyoming at the time it was registered. See
Regardless of whether Stanford stands for the proposition that
We therefore adopt the analysis of the United States District Court in Juneau which reviewed the legislative intent of the enactment of
Clearly there is an intended difference in bringing a separate action for the enforcement of a judgment and in merely registering a judgment where both creditors and debtors are relieved of the additional cost and harassment of further litigation. See 1954 U.S.C.C.A.N. 3142. This difference reflects the ministerial effect of registration under
We hold that the six year period during which a writ of execution can be issued under
ISSUE 3
Did the District Court err in failing to determine that the bank should have complied with the Uniform Enforcement of Foreign Judgments Act when it registered the Wyoming consent judgmеnt in Montana state court?
The Robinsons claim that the bank did not comply with the procedures set forth in the Montana Uniform Enforcement of Foreign Judgments Act,
We will review a district court‘s conclusion of law for its correctness. Farmers Plant Aid, 879 P.2d at 1175. The District Court was correct in that the Uniform Act did not apрly to the registration of the Wyoming judgment in the Montana federal district court. However, the judgment was then filed in state district court subsequent to Montana‘s adoption of the Uniform Act. The Robinsons assert that the Uniform Act should have been followed by the bank when it filed the Montana federal court judgment in the Montana district court. Contrarily, the bank argues that a foreign judgment under the Uniform Act should be construed to mean a judgment of any non-Montana federal or state court. Under the bank‘s reasoning, the bank should not be obliged to follow the Act where the federal court and the state court in which the federal judgment is filed are located in the same state.
Section
Our holding that the Uniform Act applied to the registration of Montana as well as non-Montana federal court judgments is not
25-9-303. Filing of transcript of docket of federal court -- lien -- expiration. (1) A transcript of the original docket of a judgment that is rendered in the circuit or district court of the United States, ninth circuit, district of Montana, and that is certified by the clerk of court may be filed with the district court clerk of any county. From the time of the filing, the judgment becomes a lien upon all real property of the judgment debtor that is not exempt from execution in the county and that is either owned by the judgment debtor at the time or afterward acquired by the judgment debtor before the lien expires. Except as provided in subsection (2), the lien continues for 6 years unless the judgment is previously satisfied.
Given the continued vitality of that statute and the oft-stated rules that a repeal of a statute by implication is disfavored,
We hold that the bank was not required to register the judgment in Montana state court under the Uniform Act because the bank had the option of filing the judgment pursuant to
ISSUE 4
Did the District Court err in granting summary judgment in favor of the bank on the Robinsons’ declaratory action?
The Robinsons brought an action in District Court for a declaratory judgment ordering that the mortgage the bank held on the Robinsons’ Montana property be declared null and void. In that action, the Robinsons claimed the bank‘s mortgage was invalid for two reasons—there was a failure of consideration for the mortgage and the eight-year statute of limitations for foreclosing on a mortgage,
In considering the Robinsons’ first two claims, the District Court granted summary judgment in favor of the bank. The court determined that there were no questions of fact and the bank was entitled to judgment as a matter of law. The standard we еmploy in reviewing a district court‘s summary judgment is the same as that employed by the district court. Summary judgment is proper only when there are no genuine issues of material fact and the moving party is entitled to judgment as a matter of law. Klawitter v. Dettmann (1995), 268 Mont. 275, 886 P.2d 416.
The Robinsons claim a question of fact exists as to whether consideration was given for the mortgage. The court determined that the Wyoming judgment resolved the issue of whether there was consideration for both the promissory note and the mortgage executed by the Robinsons. The court concluded there was no question of fact and principles of res judicata barred relitigation of this claim as a matter of law. The Robinsons assert that the Wyoming consent judgment was based solely on consideration for the promissory note, while the mortgage is the subject of the present action.
The Wyoming consent judgment, however, stated that “[a]ll mortgages and security interests ... shall ... secure the payment of this judgment.” By this statement, the Robinsons agreed that the consideration for the mortgage is security of the judgment. The Robinsons did not appeal the consent judgment.
In HKM Assoc. v. Northwest Pipe Fittings (1995), [272 Mont. 187], 900 P.2d 302, 305, we set out a three-part test for collateral estoppel.
Collateral estoppel bars an action ... when: (1) the issue presented in a later action has been decided in a prior adjudication; (2) a final judgment in the action was issued; and (3) the party аgainst whom collateral estoppel is asserted was a party to the previous litigation.
HKM Assoc., 900 P.2d at 305 (citing Berlin v. Boedecker (1994), 268 Mont. 444, 453, 887 P.2d 1180, 1185; Farmers Plant Aid, 879 P.2d at 1176). In the instant case, the Robinsons raise the issue of whether there was consideration for the mortgage. The Wyoming consent judgment recognized that the mortgage was valid and secured
Although our conclusion is based on collateral estoppel rather than res judicata, we will uphold the result reached by the District Court since it is correct, regardless of the reason given for it. See Lindey‘s v. Goodover (1994), 264 Mont. 449, 453, 872 P.2d 764, 766. We therefore hold that the District Court did not err in finding there was no question of fact and that the Robinsons’ first claim should be dismissed.
The Robinsons argued in their motion to the District Court for summary judgment that they were entitled to an order declaring the mortgage invalid since eight years had passed from when the mortgage became due and its foreclosure was barred by the statute of limitations in
The Robinsons argued on appeal that the issue was the validity of the mortgage and again urged that the eight year statute of limitations had expired and the mortgage is therefore invalid and unenforceable. As we have noted, in the Wyoming consent judgment the parties agreed to the order which provided that the mortgage “shall continue in еffect and secure the payment of this judgment until such time this judgment has been fully paid and satisfied.” According to the order, the Robinsons and the bank agreed to extend the mortgage until the judgment was paid. This Court has held that parties may agree to extend the life of a mortgage. Aitken v. Lane (1939), 108 Mont. 368, 375, 92 P.2d 628, 630. We conclude that the Wyoming consent judgment tolled the statute of limitations until the underlying obligation was paid, and therefore, the statute of limitations had not yet begun to run on the enforcement of the bank‘s mortgage.
Since the Robinsons agreed to toll the statute of limitations in the Wyoming consent judgment, they cannot now argue that the eight
Although we do not follow its reasoning, we agree with the District Court‘s result on the issue of whether the statute of limitations has expired. See Lindey‘s, 872 P.2d at 766. Therefore, we conclude that the District Court did not err in holding that the statute of limitations had not run on the execution of a judgment lien.
In summary, the District Court‘s April 14, 1994, order is properly before this court due to the consolidations of the two district court actions. We reverse the District Court‘s ruling that
CHIEF JUSTICE TURNAGE and JUSTICE HUNT concur.
JUSTICE NELSON concurs and dissents.
I agree with our analysis of Issues 1, 3 and 4 and dissent from our decision on Issue 2.
On Issue 2, I disagree with our conclusion that on registration of the Wyoming federal court judgment in Montana federal district court, a new judgment was not created under
In Stanford v. Utley (8th Cir. 1965), 341 F.2d 265, then Circuit Judge Blackmun, wrote what is probably the seminal decision interpreting
We have concluded that
§ 1963 is more than “ministerial” and is more than a mere procedural device for the collection of the foreign judgment. We feel that registration provides, so far as enforcementis concerned, the equivalent of a new judgmеnt of the registration court. [Emphasis added.]
The court based its conclusion on several considerations. First, the court found the statute to be more comprehensive than the limited execution type of statute exemplified by
Moreover, without attempting to reconcile the conflicting language used by the two federal district courts in Juneau Spruce Corp. v. International Longshoremen‘s & Warehousemen‘s Union (N.D.Cal. 1955), 128 F.Supp. 715; and Juneau Spruce Corp. v. International Longshoremen‘s & Warehousemen‘s Union (D. Hawaii 1955), 128 F.Supp 697, Judgе Blackmun, nevertheless, found the actual holdings of those two cases—that timely registration opens the way to enforcement procedure in the registration court—were consistent with the court‘s decision in Stanford. Stanford 341 F.2d at 268-69.
Finally, Marx v. Go Pub. Co., Inc. (9th Cir. 1983), 721 F.2d 1272, is consistent with Stanford in holding that registration under
Furthermore,
From the time of the filing [of the federal court judgment with the clerk of the state district court], the judgment becomes a lien upon all real property of the judgment debtor that is not exempt from execution in the county and ... the lien continues for 6 years unless the judgment is previously satisfied. [Emphasis added.]
I suggest that it is more than mere coincidence that the time period during which the judgment lien is in effect on filing of the federal court judgment in state court under this statute, is exactly the same time period as the judgment lien for “new” judgments docketed with the clerk of court. See
Accordingly, until our decision here, I suggest that a federal court that looked to Montana law in general and to
At least until this case, it appears that the registration of or suing out of a foreign federal or state court judgment in Montana would create a “new” judgment in this state. The same is true of a Montana federal court judgment transferred by filing of a transcript of judgment in the state district court. The mischief in our decision here is
JUSTICE GRAY joins in the foregoing special concurrence and dissent.
JUSTICE LEAPHART, dissenting.
I concur with the Court‘s holding in issues one and two, and specially concur in issue four. However, I dissent from our holding in issue number three that
Generally, repeal by implication is not favored unless the statutes in question are irreconcilable. W.R. Grace & Co. v. Department of Revenue (1989), 238 Mont. 439, 450, 779 P.2d 470, 476, cert. denied, 493 U.S. 1094 (1990); Montana Power Co. v. Public Serv. Comm‘n (1984), 214 Mont. 82, 93, 692 P.2d 432, 437-38; State ex rel. Sol v. Bakker (1982), 199 Mont. 385, 392, 649 P.2d 456, 460. However, such repeal is necessary if the statutes are irreconcilable and if repeal will give effect to thе obvious legislative intent expressed in passing the newer and more comprehensive act. State v. Carisch Theatres, Inc. (1977), 172 Mont. 453, 458, 564 P.2d 1316, 1319.
In many instances, this Court has held that the passage of comprehensive uniform legislation repeals conflicting provisions of ear-
Montana is not alone in following this rule of statutory construction. See Peter v. State (Alaska 1975), 531 P.2d 1263; Dairyland Ins. Co. v. Rose (N.M. 1979), 591 P.2d 281, 284; Rivera v. District Court (Okla. 1993), 851 P.2d 524, 527. In Peter, the Suprеme Court of Alaska held that the Uniform Alcoholism and Intoxication Treatment Act repealed by implication an earlier statute prohibiting a person from being intoxicated while upon or along a highway. Peter, 531 P.2d 1263. The Peter court recognized two categories of repeal by implication:
There are two well-settled categories of repeals by implication: (1) where provisions in the two acts are in irreconcilable conflict, the later act to the extent of the conflict constitutes an implied repeal of the earlier one; and (2) if the later act covers the whole subject of the earlier one and is clearly intended as a substitute, it will operate similarly as a repeal of the earlier act.
Peter, 531 P.2d at 1267 (citations omitted).
Both rationales apply to the instant case. First,
Second, as a Uniform Act, the Uniform Enforcement of Foreign Judgments Act covers the whole subject area and was clearly intended as a substitute. Repeal by implication is particularly compelling in the case of a subsequent Uniform Act because one of the primary purpоses in adopting a Uniform Act is to bring the law of the State of Montana into conformity with the laws of the other states adopting the same Uniform Act. See, e.g.,
The Uniform Enforcement of Judgments Act does provide for an “optional procedure” whereby a judgment creditor‘s right to bring an
I conclude that the District Court erred in finding that the Bank was not required to follow the Uniform Act in registering the judgment in Montana State District Court.
JUSTICE TRIEWEILER joins in the foregoing dissent of Justice W. William Leaphart.
