Credit Management Corporation v. Galvan

Citations

• 2019 COA 107

Syllabus

Franklin Credit Management Corp. (Franklin Credit) obtained a default judgment against Galvan in 2007 and recorded a transcript of the default judgment with the Adams County Clerk and Recorder (the Clerk), creating a judgment lien on Galvan's nonexempt real property in Adams County. However, Franklin Credit didn't execute on the judgment, and the judgment lien expired in 2013. In 2016, Franklin Credit re-recorded the transcript of judgment with the Clerk but did not revive its judgment. Two years later, Franklin Credit obtained a writ of execution and delivered it to the Adams County Sheriff. The Sheriff recorded a certificate of levy with the Clerk and personally served Galvan with the notice of levy and writ of execution. Galvan moved to set aside the writ of execution. The district court granted the motion, set aside the writ of execution, and awarded Galvan attorney fees and costs. On appeal, Franklin Credit contended that the district court erred in setting the writ aside based on the expired judgment lien. A valid judgment lien is not a necessary prerequisite to obtain a writ of execution. Further, the writ of execution issued here makes no reference to a judgment lien it refers only to Franklin Credit's judgment. The district court thus erred in setting aside the writ of execution because Franklin Credit's judgment lien had expired. Franklin Credit also contended that the district court erred in setting aside the writ of execution because Colorado recognizes an execution lien independent of a judgment lien and it had a valid execution lien. Though a judgment creditor may obtain a judgment lien and an execution lien, they are independent statutory liens. And although Franklin Credit's judgment lien expired, its judgment has not. But the district court has not yet addressed the validity of the execution lien, nor has it addressed Galvan's claim for homestead exemption. The order setting aside the writ of execution and awarding Galvan attorney fees and costs was