Execution of judgment prevents a dormant lien in Ohio

Lien does not become dormant in Ohio

In re: PETER GRUBIC, Debtor. BRIAN A. BASH, TRUSTEE, Plaintiff, v. PETER GRUBIC, et al., Defendants.
Case No. 06-14937, Chapter 7, Adversary Proceeding No. 07-1228

Case Law
UNITED STATES BANKRUPTCY COURT FOR THE NORTHERN DISTRICT OF OHIO
2008 Bankr. LEXIS 881

March 21, 2008, Decided

Facts: The judgment creditor obtained a judgment against the debtor in state court in 1997, and she filed a lien on real property the debtor owned. The creditor filed a foreclosure action against the debtor's property in 1998, and a state court ordered the sheriff to sell the property. The sale was stayed in 2005 and again in 2006, however, after the debtor declared bankruptcy, and a trustee who was appointed to represent the bankruptcy estate filed an adversary proceeding against the judgment creditor and other creditors to determine their rights in the debtor's real property.

Issue: Whether the lien became dormant after failure to execute the judgment for a period of time

Ruling: No. Under Ohio case law, a creditor who filed a foreclosure action or filed an answer in a foreclosure action did not need to refile or execute on the judgment to protect his or her interest, and the foreclosure action the judgment creditor filed prevented her judgment lien from becoming dormant.

Lesson Learned: Pursuant to Ohio Rev. Code Ann. § 2329.07(A)(1), execution on a judgment is one way to prevent a judgment from becoming dormant. Execution is formally defined in Ohio Rev. Code Ann. § 2327.01 as a process of a court, issued by its clerk, and directed to the sheriff of the county. However, a line of Ohio cases makes it clear that a creditor who files a foreclosure action, or who files an answer in a foreclosure action, does not need to refile or execute on the judgment to protect the creditor's interest in the case.

Written by Kevin Levonas and Jerry L.