[WSBARP] Judgment lien issue

[Andrew Hay]

Wow - that is a tricky one!
I haven't seen this issue so others who have addressed it may have some input based on their experience.
But I would not want to release the lien before the appeal is concluded.  The problem is you need some cover in case a sale or refinance does not go through because of the lien and there are damages.
You could file a motion in the trial court asking for a declaratory ruling that determines that the judgment payoff is a certain amount at present but is subject to amendment in the future due to appeal such that payoff at the current amount will not release the judgment lien and the lien may increase depending on the outcome of the appeal.  Alternatively ask the court to indicate the lien amount is just not fixed at the moment.  Or allow the sale and ask that ALL sale proceeds be held in the court registry or a trust account until the appeal is done and the lien amount is determined.
Or tell them all sale proceeds have to be interpled and held pending resolution of an action to determine the proper amount of the judgment lien.

Andrew Hay
Hay & Swann PLLC
201 S. 34th St.
Tacoma, WA 98418
www.washingtonlaw.net<http://www.washingtonlaw.net/>
andrewhay at washingtonlaw.net<mailto:andrewhay at washingtonlaw.net>
253.272.2400 (w)
253.377.3085 (c)
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From: wsbarp-bounces at lists.wsbarppt.com <wsbarp-bounces at lists.wsbarppt.com> On Behalf Of Patrick McDonald
Sent: Friday, September 6, 2019 10:38 AM
To: WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com>
Subject: [WSBARP] Judgment lien issue

Listmates,

My client has a judgment lien against real property that is being sold. Escrow has asked for a payoff. However, the case in which my client obtained a judgment is still active. My client prevailed on appeal and was awarded attorney fees and costs. A mandate has not issued as the seller has since filed a petition for review with the Supreme Court. Currently, we are waiting to hear if the court will hear the case.

Ultimately, when jurisdiction of the case is eventually returned to the trial court, my client intends to file a motion adding its attorney fees and costs incurred on appeal to the judgment (assuming the Supreme court doesn't take the case or reverse the trial and appellate court decisions).

In the meantime, we need to respond to the request for a payoff of the judgment lien. How does this work? If the property is sold and the judgment is satisfied from sale proceeds, is there any way the judgment lien "re-attaches" to the property if and when the judgment is supplemented to add the attorney fees and costs incurred on appeal? And if the judgment is voluntarily satisfied from escrow proceeds, does that render the appeal moot?

A lis pendens was not recorded as the litigation did not involve the piece of property being sold. No supersedeas bond, cash, or alternate security was posted to stay enforcement of the judgment.

Any thoughts would be appreciated. Thank you.

Patrick McDonald
_______________________
Pody & McDonald, PLLC
1200 Fifth Avenue, Suite 1410
Seattle, WA 98101-3106
T: 206-467-1559
F: 206-467-4489

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