STENERSON v CITY OF KALISPELL

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No. 82-126 IN THE SUPREME COURT OF THE STATE OF MONTANA 1982 CHARLES STENERSON and F. W. SCHMIDT, joint venturers the name of STENERSON & SCHMIDT, Co-Partners, Plaintiffs and Respondents, THE CITY OF KALISPELL, Defendant and Respondent, GLACIER NATIONAL BANK, Claimant and Respondent, COLONIAL TERRACE ASSOCIATES, Claimant and Appellant Appeal from: District Court of the Eleventh Judicial District, In and for the County of Flathead Honorable J. M. Salansky, Judge presiding. Counsel of Record: For Plaintiffs: James A. Cumrning, Columbia Falls, Montana For Defendant: Merritt N. Warden, Kalispell, Montana For Claimant: Chris G. McEwan, Columbia Falls, Montana For Appellant: Worden, Thane & Haines; Ronald A, Bender, Missoula, Montana - - - Submitted on briefs: Decided: - C' Filed: d. p k. - 2 1982 I/ Y # " Clerk - July 15, 1982 September 2, 1982 J u s t i c e J o h n C. the Court. Harrison delivered Mr. This appeal Schmidt's Kalispell involves portion . of a two t h e f o l l o w i n g O p i n i o n of competing judgment The D i s t r i c t C o u r t of to creditors obtained from the F.W. City of the Eleventh J u d i c i a l District i n F l a t h e a d C o u n t y o r d e r e d t h e a l l o c a t i o n of t h e judgment be p a i d first to Glacier National Bank to satisfy b a l a n c e p a i d t o C o l o n i a l T e r r a c e Associates. Terrace Associates, appeals the claim its and the Appellant, Colonial determination of priority. T h i s a c t i o n , as w i l l be n o t e d f u r t h e r i n t h i s o p i n i o n , is o n e of two a c t i o n s now b e f o r e t h i s C o u r t i n v o l v i n g j u d g m e n t s of District Courts appellant. Terrace, State concerning In the other now on a p p e a l of Montana, has been the filed I n addition, case, from t h e work Schmidt et done this v. al. are appealing a c o s t s and a t t o r n e y f e e s . for by the Colonial F i r s t J u d i c i a l D i s t r i c t of appellants $128 ,278 , p l u s i n t e r e s t , bond construction amount in the judgment r a i s e d w i t h o n l y t h e b r i e f s of a p p e l l a n t . the of A supersedeas Court. District is c a l l e d upon t o d e c i d e t h e t h i s Court two issue The r e s p o n d e n t s waived f i l i n g o f b r i e f s i n t h e case. I n April of C i t y of 1 9 7 5 , S t e n e r s o n and S c h m i d t c o n t r a c t e d w i t h t h e K a l i s p e l l t o do work a t t h e B u f f a l o H i l l s G o l f When t h e c i t y r e f u s e d Course. t o p a y f o r work w h i c h had b e e n c o m p l e t e d b u t n o t computed i n t o t h e b i d p r i c e , S t e n e r s o n and S c h m i d t f i l e d suit in June 30, Flathead 1981, County. Following t h i s C o u r t remanded w i t h o r d e r s t o e n t e r judgment in the j udgment ) Just amount of judgment plus appeal, on case to F l a t h e a d C o u n t y the i n f a v o r of $28,359.21 and S t e n e r s o n and S c h m i d t interest (the Kalispell . prior Colonial to , Knutson in attorney's against the fees Kalispell Associates Terrace judgment) the F.W. amount in the a obtained Schmidt, of judgment, District plus Court June judgment Leonard $128 , 2 7 8 , on of Knutson (the and interest, the 22, First 1982, Helena Roberta costs and Judicial D i s t r i c t o f t h e S t a t e o f Montana, and Clark. transcript A of i n and f o r t h e County of L e w i s the Helena was f i l e d judgment in M i s s o u l a C o u n t y on J u n e 23, 1 9 8 1 , and i n F l a t h e a d C o u n t y on J u n e On J u l y 2 , 1 9 8 1 , C o l o n i a l f i l e d a w r i t of e x e c u t i o n i n 24, 1981. Flathead County. individually On same d a y , the a executed note in J u l y 2, the 1981, amount of F.W. Schmidt $10,532.79 to G l a c i e r N a t i o n a l Bank d u e December 29, 1 9 8 1 . G l a c i e r and S c h m i d t signed a security assignment of On J u l y clerk of funds 10, 1981, court exchange a g r e e m e n t which for judgment. of describes from the the City of County satisfaction a of of the sum judgment as Kalispell. to the $37,788.76 in delivered of in the Kalispell The f u n d s were d e p o s i t e d w i t h t h e c l e r k of c o u r t w i t h instructions to hold subject to further 1 9 8 1 , C o l o n i a l ' s w r i t of On J u l y 2 2 , i n d i c a t i n g t h a t a l l m o n i e s due F.W. District City Kalispell Flathead collateral the Court of instructions . e x e c u t i o n was r e t u r n e d S c h m i d t had b e e n p a i d t o t h e F l a t h e a d County. On J u l y 23, 1981, Colonial f i l e d a p e t i t i o n f o r a c h a r g i n g o r d e r i n M i s s o u l a County w h i c h is the principal partnership place and J u d g e Green of issued the of where business the of Stenerson reside. partners the On Fourth J u d i c i a l District the charging order pursuant to and that Schmidt same d a y , i n M i s s o u l a County section 35-10-505, MCA. The o r d e r c h a r g e s t h e i n t e r e s t o f F.W. Schmidt i n t h e p a r t n e r s h i p of any proceeds S t e n e r s o n and S c h m i d t and o r d e r e d t h a t Schmidt be used t o t h e H e l e n a m i g h t r e c e i v e f r o m t h e K a l i s p e l l judgment judgment i n f a v o r of C o l o n i a l . The Flathead District t h e K a l i s p e l l judgment of court claims Court t o F.W. ordered September 3, proof of t h a t G l a c i e r and C o l o n i a l Glacier priority. 1 9 8 1 , and C o l o n i a l a l l o c a t i o n of S c h m i d t be r e t a i n e d by t h e c l e r k i n F l a t h e a d C o u n t y and and t h a t the filed filed its file claim on i t s claim o n S e p t e m b e r 4 , 1981. On September 3, 1981, Schmidt, et al., filed a notice a p p e a l i n t h e H e l e n a j u d g m e n t and a s k e d f o r a s t a y o f of execution p u r s u a n t t o Rule 7 , filed a supersedeas judgment. of the bond On O c t o b e r 6 , 1 9 8 1 , S c h m i d t equal to the amount of the Helena On November 3 , 1 9 8 1 , J u d g e Meloy of t h e D i s t r i c t C o u r t First Judicial District execution. and M.R.App.Civ.P. Upon ordered i n H e l e n a d i s s o l v e d t h e s t a y of t h i s C o u r t i t was a g a i n s t a y e d application to stayed until On December 11, 1 9 8 1 , further order of this Court. t h e D i s t r i c t Court i n F l a t h e a d County o r d e r e d S c h m i d t ' s a l l o c a t i o n of t h e K a l i s p e l l judgment be p a i d to G l a c i e r N a t i o n a l Bank, w i t h t h e b a l a n c e p a i d , T e r r a c e Associates. i f any, t o Colonial Colonial Terrace Associates appeals. Appellant r a i s e s seven i s s u e s f o r review. those issues t h e District is w h e t h e r The s u b s t a n c e of C o u r t ' s o r d e r of priority w a s erroneous. t o R u l e 7 ( a ) , M.R.App.Civ.P., Pursuant a n a p p e l l a n t may be g r a n t e d a s t a y o f e x e c u t i o n of j u d g m e n t on a p p e a l i f t h e D i s t r i c t Court approves of M.R.App.Civ.P., appellant's requires the supersedeas bond be bond. executed 6(a) Rule at by least two securities. Here, S c h m i d t d i d p r e s e n t t h e D i s t r i c t C o u r t w i t h a supersedeas bond M.R.App.Civ.P., met which the requirements on October 6 , 1981. of Rule 6(a), Although t h e District Court o r d e r e d t h e s t a y o f e x e c u t i o n d i s s o l v e d on November 3 , 1 9 8 1 , t h i s C o u r t g r a n t e d a s t a y on November 1 2 , 1 9 8 1 , and o r d e r e d t h e s t a y t o remain i n e f f e c t u n t i l f u r t h e r o r d e r . Appellant, District Colonial Terrace Associates, the K a l i s p e l l judgment be a p p l i e d f i r s t t o G l a c i e r N a t i o n a l Bank. We on their judgment. erred in awarding Schmidt's Flathead of disagree. Court claims the allocation C o l o n i a l was s t a y e d f r o m t a k i n g a n y a c t i o n t o e x e c u t e judgment pending a final determination of the Helena T h e r e f o r e , t h e c h a r g i n g o r d e r i s s u e d by J u d g e G r e e n i n M i s s o u l a C o u n t y was v a c a t e d upon o u r g r a n t i n g of t h e s t a y o f e x e c u t i o n pending a p p e a l . S c h m i d t ' s s u p e r s e d e a s bond i s e q u a l to t h e f u l l amount of t h e Helena execute judgment. upon the If that bond to judgment recover is affirmed the amount of , Colonial the may judgment. T h u s , C o l o n i a l is a s s u r e d of s a t i s f y i n g t h e i r j u d g m e n t s h o u l d t h e a p p e a l o n t h e H e l e n a j u d g m e n t be a f f i r m e d . W e remand t o t h e D i s t r i c t C o u r t w i t h i n s t r u c t i o n s to release S c h m i d t ' s a l l o c a t i o n o f t h e K a l i s p e l l j u d g m e n t and o r d e r t h a t t h e charging order W e concur: Chief ~ u s t i c e from Missoula County be vacated .

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