[WSBARP] Judgment lien issue

[Dwight Bickel]

When I was a title underwriter, I advised sellers to obtain an order establishing a deposit to clerk of proceeds, and removing the lien from the real property. It seemed fast, but I think every one was a stipulation for the order.


-------- Original message --------
From: Patrick McDonald <pmcdonald at podymcdonaldlaw.com>
Date: 9/6/19 11:42 AM (GMT-07:00)
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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