[WSBARP] Difficulty proving what we all know to be true.

[Eric Nelsen]

I agree with you but I think there is a separate problem: the recording of the CA judgment, even if not enforceable, is nevertheless a document clouding title, so the title company isn't going to insure until that cloud is removed. And of course one way to do that is a lawsuit which takes forever, and the other way is to pay the judgment and get a satisfaction from the creditor. Perhaps a discussion with the title company's underwriter and an indemnity from seller might be enough?

On the question: You could point out that a judgment does not become a lien on real property until it meets the requirements of RCW 4.56.200, which only refers to domestic courts. And a foreign judgment doesn't become a domestic judgment until the requirements of RCW 6.36.025 are met. Even if Ch. 6.36 RCW says a foreign judgment "may" be domesticated, the foreign judgment also can't become a lien on real estate until it is domesticated.

I might also consider whether an improper recording of a foreign judgment amounts to slander of title against the creditor. "Slander of title is defined as: (1) false words; (2) maliciously published; (3) with reference to some pending sale or purchase of property; (4) which go to defeat plaintiff's title; and (5) result in plaintiff's pecuniary loss. Pay 'N Save Corp. v. Eads, 53 Wash.App. 443, 448, 767 P.2d 592 (1989) (citing Brown v. Safeway Stores, Inc., 94 Wash.2d 359, 375, 617 P.2d 704 (1980))." Rorvig v. Douglas, 123 Wn.2d 854, 859-860, 873 P.2d 492 (1994). In this case, the "falsity" is the recording of a judgment that is totally ineffective as a judgment-the creditor might just as well have filed a completely forged judgment with the same effect of clouding title with an unenforceable instrument.

Sincerely,

Eric

Eric C. Nelsen
Sayre Law Offices, PLLC
1417 31st Ave South
Seattle WA 98144-3909
206-625-0092
eric at sayrelawoffices.com<mailto:eric at sayrelawoffices.com>

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From: wsbarp-bounces at lists.wsbarppt.com <wsbarp-bounces at lists.wsbarppt.com> On Behalf Of Craig Gourley
Sent: Friday, October 21, 2022 11:19 AM
To: WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com>
Subject: [WSBARP] Difficulty proving what we all know to be true.

Listmates.  A Friday conundrum.  In order to convince a title company to insure a transaction I need to prove something I know to be true but is apparently so basic, nobody has challenged it, thus no case law.   In the case of an out of state judgement we all know you must domesticate it before it can be enforced and RCW 6.36 deals with the filing of a foreign judgement and how it MAY be filed.  Nowhere in the law can we find where says that a foreign judgment MUST be filed before it can be enforced.   Joseph found a case out of Arkansas that is tangentially related but not full on point.   Obviously there are lots of arguments but no authority that we can find that is clear and on point to show the title company.  Judgement creditor out of California just filed a copy of the CA judgement with the Auditor.   Title company wants a court order saying the judgement is not enforceable. Obviously a nonstarter because as soon as we notify the judgement holder of the error of their ways, they will domesticate it. Any handy citations?   Thanks and TGIF

Gourley Law Group
Snohomish Escrow
The Exchange Connection
Trustee Services of Washington, Inc
1002 10th St Snohomish, WA 98290
PO Box 1091 Snohomish, WA 98291
360-568-5065   Craig at glgmail.com<mailto:Craig at glgmail.com>

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