Geauga Savings Bank v. Nall, Unpublished Decision (9-30-1999)
Geauga Savings Bank v. Nall, Unpublished Decision (9-30-1999)
Opinion of the Court
This instant case deals with a dispute over the revival of a debt between appellant Roger M. Nall ("Nall") and appellee. The case arose when the Geauga Savings Bank filed a foreclosure action against appellants in July 1997 ("the 1997 foreclosure action"), from which this appeal originated. In the 1997 foreclosure action, the Geauga Savings Bank requested that appellee and the other named creditors prove their liens against appellants' residence, the subject of the foreclosure action, and that all of the liens be ascertained and marshaled in order of their priority.
Appellee filed an answer in January 1998 in which he asserted that he had a valid judgment lien against appellants' residence in excess of fifty thousand dollars. According to appellee, the judgment lien, established in December 1991, was not dormant because he attempted to collect his judgment when he filed an answer in a separate, earlier foreclosure action filed by the Geauga County Treasurer in 1992 ("the 1992 foreclosure action"). Appellee conceded both below and on appeal that the 1992 foreclosure action was subsequently dismissed without formal execution having been issued.1
Appellants thereafter moved the court for summary judgment in their favor on appellee's claims. According to appellants, appellee's judgment became dormant due to appellee's failure to renew his certificate of judgment lien or to obtain execution on his judgment within five years of the first filing in December 1991.2 As a result, appellants argued that the lien on that judgment failed.
Appellants further argued that Nall received an order from the United States Bankruptcy Court discharging him of his debts effective November 24, 1997. According to appellants, this meant that appellee's dormant judgment became void and unenforceable against Nall in the 1997 foreclosure action.3
The trial court denied appellants' motion for summary judgment, finding that appellee's judgment lien was effectively revived by his participation in the 1997 foreclosure action. The trial court thereafter entered final judgment in the case, in which the court recognized appellee's judgment lien against Nall.
Appellants perfected a timely appeal, asserting one assignment of error for our consideration:
"THE TRIAL COURT ERRED IN DENYING APPELLANTS' MOTION FOR SUMMARY JUDGMENT, REVIVING APPELLEE'S JOHN A. BOND'S DORMANT JUDGMENT AND ORDERING JOHN A. BOND'S JUDGMENT LIEN TO REMAIN AGAINST APPELLANTS' REAL ESTATE."
In their sole assignment of error, appellants argue that the trial court erred by reviving a dormant judgment and by ruling that appellee's judgment lien remained valid against appellants' real estate.
In the proceedings in the trial court, appellee's primary argument was that his December 1991 judgment lien never became dormant because he had filed an answer in the 1992 foreclosure action. However, pursuant to R.C.
There is no language in R.C.
As a result, we believe the trial court was correct in its judgment entry when it implied that appellee's December 1991 judgment lien had become dormant. Nevertheless, we take issue with that portion of the trial court's judgment entry that indicated that appellee's participation in the 1997 foreclosure action effectively revived the dormant judgment lien, and, ultimately, with the trial court's final judgment in this case. See Dresslerv. Bowling (1986),
As previously discussed, once a judgment becomes dormant pursuant to R.C.
However, while dormancy does not remove or discharge the judgment, it does wipe out any lien created by the judgment. Indeed, the Revised Code does not make any provision to enable the creditor to revive the judgment lien. Thompson v. Slone (1991),
Moreover, if the trial court finds that a dormant judgment should be revived, the debtor is entitled to a show cause hearing at which he or she is permitted to show "sufficient cause" as to why the debt should not be revived. See R.C.
Thus, at the time the 1997 foreclosure action was filed, appellee had a dormant judgment and, as a result, no lien existed from that judgment. The record reveals that appellee never instituted proceedings to revive the dormant judgment pursuant to the above mentioned statutory provisions. Moreover, even if he had revived his dormant judgment, he never attempted to file a new judgment lien.
It follows, therefore, that the trial court should have granted appellants' motion for summary judgment on the grounds that appellee had a dormant judgment but no lien against Nall at the time when the 1997 foreclosure action was filed. Instead, the court denied the motion and sua sponte ruled that appellee had somehow revived the dormant judgment and the lien by participating in the 1997 foreclosure action.8
We believe this to be error. First, appellee never moved the court to revive the dormant judgment at any point in the proceedings below. Indeed, he argued that the judgment did not need to be revived because it was not dormant. Second, even if the trial court construed appellee's response to appellants' motion for summary judgment as a motion to revive the dormant judgment, there was no such notice to appellants. As a result, there was no opportunity to request a show cause hearing as provided in R.C.
Second, even if we assume that the trial court had the authority to revive, sua sponte, the dormant judgment under the facts of this case, the former judgment lien would not have automatically been revived unless it were separately filed. Thus, under any scenario, it was error to recognize appellee's lien.Thomas.
As to the impact of any bankruptcy discharge, we decline to delve into the issue of whether any such discharge operated to preclude revival of the dormant judgment.9 If appellee subsequently attempts to petition the court for revival of the dormant judgment, appellants can raise the matter at a proper show cause hearing.
In light of the foregoing analysis, appellants' sole assignment of error is well taken to the extent indicated. The judgment of the trial court is reversed and the matter remanded for further proceedings consistent with this opinion.
__________________________________________ PRESIDING JUDGE JUDITH A. CHRISTLEY
NADER, J., COX, J., Seventh Appellate District, sitting by assignment, concur.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.