|
Analysis: The Tennessee Legislature made an interesting
change to the typical rule in
Tennessee that judgments are only good for ten years unless renewed
(See T.C.A. § 28-3-110 and Tennessee Rule of
Civil Procedure 69.04). The Tennessee Legislature in the 2014
Tennessee legislative session passed Public Chapter No. 596
which was signed into law by Governor Bill Haslam on March 28, 2014. This statute essentially
allows a party to make a judgment permanent (as opposed to the current law
where it expires after 10 years unless renewed) if the injury or death was
caused by criminal conduct. This act applies to any civil judgments that
go into effect after July 1, 2014.
Additionally, there is actually a way for this act to apply to judgments
entered before July 1, 2014, if a specific procedure is followed.
The new T.C.A. § 28-3-110(B)(1) provides
as follows:
(b)(1) Notwithstanding the provisions of subsection (a), there is no time
within which a judgment or decree of a court of record entered on or after July
1, 2014, must be acted upon in the following circumstances:
(A) The judgment is for the injury or death of a person that resulted
from the judgment debtor's criminal conduct; and
(B) The judgment debtor is convicted of a criminal offense for the
conduct that resulted in the injury or death; or
(C) The civil judgment is originally an order of restitution converted to
a civil judgment pursuant to § 40–35–304.
(2)(A) Prior to entry of the judgment, the judge shall make a
determination on the record that the plaintiff's injury or death was the result
of the defendant's criminal conduct and that the defendant's conduct resulted
in a criminal conviction.
(B) When entering a civil judgment on or after July 1, 2014, to which
this subsection applies, both the trial judge and clerk shall sign and note the
existence of the conviction on the judgment document, and the clerk shall also
make appropriate docket notations. Such signatures and notations shall be
sufficient evidence that the judgment is valid until paid in full or otherwise
discharged as authorized by law.
As a result, when
there is a judgment for injury or death of a person that resulted from someone’s
criminal conduct and there is a conviction for the criminal offense
related to the conduct, then there is no longer a ten year time limit that
applies to that judgment. In other
words, the judgment can be executed on forever if the judgment comes within this
statute. The statute requires the judge
to make a specific determination that the injury or death was a result of
defendant’s criminal conduct and that there was a criminal conviction. The trial judge and the clerk of the court
are then required to sign and note the existence of a conviction on the
judgment docket. This stands as evidence
complying with this statute to make the judgment last forever until paid or
otherwise discharged by law.
Additionally, if any
judgment was awarded prior to July 1, 2014, but is still valid, then that judgment
can be presented to the clerk under this same statute under subsection (c). Subsection (c) provides as follows:
(c)(1) Notwithstanding subsection (b), if a person was awarded a judgment
meeting the criteria of subdivision (b)(1) but the judgment was entered prior
to July 1, 2014, and is still valid as of the date it is presented to the clerk
pursuant to this subsection, the statute of limitations on such judgment set
out in (a) shall be tolled if the person:
(A) Obtains a certified copy of the defendant's judgment of conviction
from the clerk of the court in which the conviction occurred showing that the
conviction meets the criteria of subdivision (b)(1)(A) and (B);
(B) Obtains a certified copy of the person's civil judgment that was
based on the defendant's criminal conduct;
(C) Completes, under penalty of perjury, an affidavit, in substantially
the form set out in subsection (d).
(2) The clerk shall ensure that the documents presented are those
required by subdivision (1). If they are the correct documents, the clerk shall
record the documents and from the date of recordation, the statute of
limitations of the person's civil judgment shall be tolled.
As a result, a prior
judgment that is still valid can be extended permanently if a certified copy of
the defendant’s judgment of conviction that shows compliance with subsection (b)
is filed with the circuit court clerk.
Additionally, a certified copy of the civil judgment must be filed with
the court. Finally, an affidavit as
outlined in the statute must be filed with the court. If this is completed then there is no statute
of limitations for execution on that judgment even if it was entered prior to
July 1, 2014.
As a result, anyone
who currently has an outstanding judgment that is based on criminal conduct
needs to comply with the provisions in subsection (c) in order to permanently
extend this judgment. Further, in the
future, any judgments that are based upon criminal conduct can be made
permanent. Counsel that practice in
Tennessee need to be very familiar with this statute because if you obtain a
judgment that falls within this statute and you do not make the judgment
permanent under this statute, and it expires without collection, this is likely
legal malpractice. Although, likely any
claim for legal malpractice under this scenario is barred by the new
Tennessee statute of repose for legal malpractice which is now 5 years from the
date of the act or omission that constitutes legal malpractice. This situation would therefore be another
example where the new 5 year statute of repose protects the attorney even
before the client would be aware of the occurrence of the malpractice. However, the statute of repose will likely
not protect you if your judgment is going to expire in the next few years and
you do not take the steps necessary to extend the judgment permanently under
this statute (or at least extend it for 10 years under the renewal provision
which would then get you past the 5 year statute of repose).
Follow me on Twitter at @jasonalee for updates from the Tennessee Defense Litigation
blog.
|