[WSBARP] Judgment lien issue

[Stephen A. Brandli]

I'm not sure there is any choice about releasing the lien. The lien 
arises by statute out of the judgment.  If the judgment is satisfied, 
then the lien is released, this by statute.  I don't think a court has 
the discretion to put some kind of hold on the judgment or lien because 
of some possibility of a future judgment in the case.

There is Chapter 6.25 RCW relating to attachment, but of course this is 
limited.

     Steve Brandli
     Brandli Law
     Friday Harbor, WA

On 9/6/19 11:38 AM, Andrew Hay wrote:
>
> 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. 34^th St.
>
> Tacoma, WA 98418
>
> /www.washingtonlaw.net/ <http://www.washingtonlaw.net/>//
>
> /andrewhay at washingtonlaw.net/ <mailto:andrewhay at washingtonlaw.net>//
>
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>
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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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