Gordon v. Lancaster
Gordon v. Lancaster
Opinion of the Court
**387We granted certiorari on the narrow question of whether a creditor may execute on a judgment more than ten years after its enrollment when the time period has expired during the course of litigation. Our resolution of this case requires us to revisit our decision in Linda Mc ,
FACTUAL BACKGROUND
In December of 2001, Rudolph Drews, the now-deceased uncle of Petitioner Donald Lancaster, was found liable in a civil action for violating securities laws in an investment scheme for a new business venture in *174Charleston. Judgment **388was enrolled against Drews in March of 2002; over the next three years, the court of appeals affirmed and this Court denied certiorari. Thereafter, in August of 2006, Respondent Frank Gordon, a creditor on the 2002 judgment, filed a petition in the circuit court for supplemental proceedings. The court granted the petition, and a hearing ensued one month later, wherein Gordon's counsel became suspicious that Drews' wife and Lancaster were complicit in shielding Drews' assets from creditors. Gordon noted, "[Drew's wife] is intertwined in this, and we believe the nephew is, too, by these gifts." This hearing was continued when Drews failed to produce tax and financial documents.
A year later, in September of 2007, Rudolph Drews died, and his estate was opened shortly thereafter. Gordon sought to continue supplemental proceedings, but delays in administering the estate arose. In February of 2010, Lancaster was deposed as part of supplemental proceedings, which confirmed Gordon's suspicions that he and Drews' wife were involved in shielding Drews' assets. Soon after, one day before her scheduled deposition, Drews' wife died.
On November 2, 2010, Gordon filed this action, asserting Lancaster assisted Drews in hiding assets from creditors in violation of the Statute of Elizabeth.
A two-day bench trial occurred in June of 2013, wherein Lancaster moved for a directed verdict based on Gordon's prior concession that this suit was based on the 2001 judgment. Therefore, according to Lancaster, because more than ten years had elapsed from the date the judgment was entered, the judgment's "active energy" had expired. The court disagreed, relying on this broad language in Linda Mc : "If a party takes action to enforce a judgment within the ten-year statutory period of active energy, the resulting order will be effective even if issued after the ten-year period has expired."
**389Thus, the court denied the motion and found in favor of Gordon for $211,677.30.
Lancaster appealed to the court of appeals, and in a split decision, the majority, relying on Linda Mc , held the trial court correctly determined section 15-39-30 did not bar satisfaction of the 2001 judgment because Gordon had timely filed this action within the ten-year window and continued to pursue it. Gordon ,
ISSUE
Does a judgment's ten-year "active energy" terminate when the judgment creditor's enforcement action remains untried when the ten-year period expires, or conversely, does a judgment creditor's mere institution of the enforcement action within ten years extend that ten-year period indefinitely until trial is held and a final order is issued?
STANDARD OF REVIEW
The interpretation of a statute is a question of law, which an appellate court is free to decide without deference to the trial court. Town of Summerville v. City of N. Charleston ,
*175DISCUSSION
Lancaster contends the court of appeals erroneously expanded this Court's holding in Linda Mc , effectively nullifying **390the statutory ten-year limit to execute on a judgment. Conversely, Gordon asserts the court of appeals correctly followed Linda Mc , noting he timely filed this action within the ten-year period and continued to pursue satisfaction of the judgment.
Section 15-39-30 provides,
Executions may issue upon final judgments or decrees at any time within ten years from the date of the original entry thereof and shall have active energy during such period, without any renewal or renewals thereof , and this whether any return may or may not have been made during such period on such executions.
Linda Mc is this Court's most recent decision addressing section 15-39-30. There, the parties executed a judgment by confession on June 2, 1995. Linda Mc , 390 S.C. at 548, 703 S.E.2d at 501. While the judgment debtor paid a portion of the judgment thereafter, Linda Mc filed a petition for supplemental proceedings nine years after the effective date of the judgment, arguing the debtor had assets subject to execution. Id. at 549, 703 S.E.2d at 502. The trial court granted the petition and referred the matter to a special referee, who held two hearings before the ten-year time period expired. Id. at 549-50, 703 S.E.2d at 502. The referee issued a report in favor of the judgment creditor and the circuit court issued an order of execution, both on June 3, 2005, one day after the time period terminated. Id. at 550, 703 S.E.2d at 502. Despite the passage of more than ten years, the Court held the judgment continued to have "active energy," initially noting
We want to stress that this is a narrow holding limited to facts similar to those at issue in this case. Hence, when a party has complied with the applicable statutes, as Respondent did in this case, and is merely waiting on a court's order regarding execution and levy, the ten year limitation found in section 15-39-30 is extended to when the court finally issues an order.
**391Id. at 554-55, 703 S.E.2d at 505 (emphasis added). However, in the next paragraph, the Court explained, "While the order came after the ten-year period, a petition for supplemental proceedings was filed before the ten-year period expired. Therefore, the judgment had active energy on June 3, 2005, because that order was the result of the supplemental proceedings filed during the ten-year period." Id. at 555, 703 S.E.2d at 505. Finally, the Court concluded, "[i]f a party takes action to enforce a judgment within the ten-year statutory period of active energy, the resulting order will be effective even if issued after the ten-year period has expired." Id. It is this language the court of appeals relied on in holding the judgment in the instant case retained active energy.
We note Linda Mc represents a departure from this Court's historic approach in analyzing section 15-39-30, and while we appreciate the compelling facts at issue therein, the decision has created confusion in what was heretofore a well-settled area of the law. Accordingly, we overrule it and return to the traditional bright-line rule. Nevertheless, even if Linda Mc were to remain good law, the court of appeals erred in relying on it and Hardee v. Lynch ,
After Hardee , this Court again noted the General Assembly's intent to "utterly extinguish" a judgment after ten years in Garrison v. Owens ,
Our decision is in accord with how we have historically interpreted section 15-39-30. Home Port Rentals, Inc. v. Moore ,
We overrule Linda Mc and reverse the court of appeals.
REVERSED.
BEATTY, C.J., and KITTREDGE, J., concur. FEW, J., concurring in a separate opinion. JAMES, J., concurring in part and dissenting in part in a separate opinion.
JUSTICE FEW :
**394I concur in the result reached by the majority as to the outcome of this case. I disagree, however, that we should overrule the actual holding in Linda Mc Co. v. Shore ,
In Linda Mc , this Court created what we called a "narrow" exception to the bright-line ten-year limitation for the issuance of an execution on a judgment, which is clearly set forth in section 15-39-30 of the South Carolina Code (2005). See **395
The majority explains-as did Judge Thomas-the facts of this case are different from the facts in Linda Mc . "In Linda Mc , the order of execution was issued only one day after expiration of the ten-year time period, whereas here, the hearing was not even held until over a year past expiration of the time period." Supra , op. at 175; see also Gordon ,
JUSTICE JAMES :
I respectfully concur in part and dissent in part. I agree LindaMc Co., Inc. v. Shore
**396In Linda Mc , the judgment creditor commenced supplemental proceedings nine years after obtaining its judgment and the matter proceeded to a hearing within the ten-year active energy of the judgment.
In Linda Mc , we emphasized that the narrowness of our holding was "limited to facts similar to those at issue in this case."
**397Both the court of appeals and Gordon relied upon this Court's retreat from Garrison and our clear dictate in Linda Mc that the narrowness of our holding was "limited to facts similar to those at issue" in Linda Mc . However, the majority has re-defined our holding to apply only to "facts identical" to those in Linda Mc . The majority notes the confusion created by our holding in Linda Mc but concludes Gordon's efforts to collect his judgment are for naught. Respectfully, I find that conclusion equally confusing.
With regard to Justice Few's concurrence, I will not delve into the vagaries of whether certain parts of this Court's conclusions in Linda Mc are dicta or not. Justice Few concludes some parts are dicta. I disagree. The analytical exercise of trying to determine what parts are dicta and what parts are not dicta ignores the obvious: this Court issued an opinion in Linda Mc explaining its rationale for extending the active energy of a judgment that was outside the ten-year bounds of section 15-39-30 of the South Carolina Code (2005). This rationale for extending *179the active energy of the judgment was, in part, predicated upon the fact that the judgment creditor "[took] action to enforce a judgment within the ten-year statutory period of active energy." Linda Mc ,
I concur in the majority's prospective overruling of Linda Mc . However, I dissent from the majority's conclusion that the facts in this case do not fall within the exception recognized in Linda Mc . I would not apply the overruling of Linda Mc to pending supplemental proceedings in other cases with "facts similar" to those found in Linda Mc . I would also afford appropriate protection to those other judgment creditors who have relied upon our holding in Linda Mc in planning their collection efforts. To protect such other creditors whose judgments may have otherwise expired, I would not apply the overruling of Linda Mc to cases in which supplemental proceedings are commenced within one hundred eighty (180) days of the date the remittitur in this case is sent to the lower court, provided the proceedings are commenced within the ten-year period of active energy of the subject judgment.
Linda Mc Co. v. Shore ,
For further background on the specific transactions, we refer to the court of appeals' recitation of the facts. Gordon v. Lancaster ,
We note the issue before us today involves precisely the confusion former Justice Pleicones predicted in a footnote, stating, "Either the period is extended so 'long as a party has taken steps within the ten year period to enforce the judgment' or such an extension is limited to the majority's 'narrow holding' and 'limited to facts similar to those at issue in this case.' " Linda Mc ,
While the Court in Linda Mc overruled Garrison , it only did so "to the extent [it is] inconsistent with this opinion." Linda Mc ,
As an additional sustaining ground, Gordon argues that as an assignee of the Drews' estates, the judgment is timely because the estates' rights did not accrue until after the Drews' deaths. However, his amended complaint demonstrates that he still seeks to execute upon the 2001 judgment, noting "By these assignments, Plaintiff does not seek to enlarge or change the judgment upon which he is suing; Plaintiff is still collecting on the 2001-2002 Trial Judgments...." Therefore, we reject Gordon's additional sustaining ground. See Carr v. Guerard ,
We overrule Linda Mc prospectively, yielding protection only to pending cases that fall within its narrow holding. See Steinke v. S.C. Dep't of Labor, Licensing & Regulation ,
[T]hose who disregard dictum, either in law or in life, do so at their peril. We are reminded of the apocryphal story of a duel which was about to take place in a saloon. One of the antagonists was an unimposing little man, thin as a rail-but a professional gunfighter. The other was a big, bellicose fellow who tipped the scales at 300 pounds. "This ain't fair," said the big man, backing off. "He's shooting at a larger target." The little man quickly moved to resolve the matter. Turning to the saloon keeper, he said, "Chalk out a man of my size on him. Anything of mine that hits outside the line don't count."
Yaeger v. Murphy ,
Reference
- Full Case Name
- Frank GORDON, Jr., Individually and as Trustee of Dorothy S. Gordon (Deceased) Trust v. Donald W. LANCASTER
- Cited By
- 5 cases
- Status
- Published