Private Capital Group, LLC v. Harris

Under ORS 18.954, supplemental judgments granting an additional award cannot be ordered after a sheriff’s sale of property at issue. Any additional bid over the award amount must be disbursed.

Harris (Debtor) appeals a judgment that confirmed the sale of his property and issued a second supplemental general judgment. Debtor borrowed money from Private Capital Group (Creditor) and secured the loan with the property in question. In 2003, Creditor filed a complaint for judicial foreclosure against Debtor. The parties agreed on a stipulated general judgment in 2004, which did not award advances for taxes paid for on the property. Creditor paid the taxes on the property until 2011. In 2011, the property was put up for auction to satisfy the 2004 judgment. Creditor placed a credit bid on the property, including the amount for taxes paid on the property. The trial court affirmed the sale and issued a second supplemental general judgment to award Creditor the amount of taxes paid on the property. Debtor argues on appeal, and the Court agrees, that Creditor was only allowed to bid up to the judgment amount and that any additional amount should be disbursed back to Debtor or Debtor’s other creditors. Once the property was sold, the trial court did not have the authority to award a supplemental judgment to Creditor under the relevant statutes. Had the supplemental judgment been ordered prior to the sheriff’s sale, it would have been valid and Creditor could have collected it from the sheriff’s sale. Additionally, a “second supplemental general judgment” does not exist under Oregon law. October 11, 2011 judgment is vacated and remanded.