HUB PARTNERS XXVI, LTD. v. BARNETT

Summary

The Oklahoma Supreme Court held that a foreclosure judgment is subject to Oklahoma's five-year judgment dormancy statute and became dormant because Hub Partners did not timely renew or execute on the judgment. The Court further held that the underlying mortgage lien did not merge into or become extinguished by the dormant foreclosure judgment and continued to secure the debt. The Court vacated the Court of Civil Appeals' opinion, affirmed in part and reversed in part the district court's judgment, and remanded.

Holdings

1. A foreclosure judgment is a judgment filed in a court of record and is subject to Oklahoma's dormancy statute, 12 O.S. § 735. The 2011 foreclosure judgment therefore became dormant when Hub failed to take one of the statutory renewal actions within five years.
2. Barnett's payments under the bankruptcy plan did not prevent the dormancy period from running. The bankruptcy did not prevent Hub from renewing the judgment during the bankruptcy proceeding, and Hub also failed to act within the additional thirty-day period allowed after dismissal under 11 U.S.C. § 108(c).
3. The mortgage lien did not merge into or become extinguished by the foreclosure judgment. The mortgage lien remains effective to secure Barnett's obligation and may support a new action, although the prior foreclosure judgment is dormant.

Questions Presented

1. Whether a foreclosure judgment is subject to Oklahoma's five-year judgment dormancy statute, 12 O.S. § 735.
2. Whether bankruptcy-plan payments, the bankruptcy stay, or the additional period provided by 11 U.S.C. § 108(c) prevented the foreclosure judgment from becoming dormant.
3. Whether a mortgage lien merges into or is extinguished by a foreclosure judgment that later becomes dormant.

Disposition

reversed_and_remanded