Will the Judgment Ever Be Satisfied ...

Comercia Bank v. Runyon, No. G053691 (D4d3 Oct. 20, 2017)

Code of Civil Procedure §§ 881–883 provide procedures for joint judgment debtors other than joint tortfeasors—e.g., debtors jointly liable on a contract—to obtain contribution from one another. Section 883 requires an application for contribution to be filed within 30 days after “the judgment is satisfied in full.”

In this case, a joint judgement Debtor filed an application for contribution more than thirty days after the judgment been paid off to a zero balance, but while the creditor’s application to add costs to the judgment remained pending. The costs motion was ultimately partially granted to permit the addition of some costs, which had not been paid at the time Debtor filed his contribution application. But the trial court nonetheless denied the application as untimely.

That was error. A judgment can only be “satisfied in full” once—at the point where the creditor has been paid in full and the obligation fully extinguished. Once that happens, on written request of a debtor, the creditor is obliged to file and serve an acknowledgement of the full satisfaction. § 724.050(a)(1), (2). Te court here holds, as used in § 883, “satisfied in full” means the filing of that acknowledgement. A mere zero balance doesn’t cut it. And since the creditor hadn’t yet filed an acknowledgement when Debtor filed his contribution application, Debtor’s application was, in fact, timely under § 883. 

Reversed and remanded.