HOUSE BILL REPORT

SSB 5864

BYSenate Committee on Law & Justice (originally sponsored by Senators Pullen, Talmadge, Newhouse, McCaslin and Madsen)

Changing provisions relating to satisfaction of judgments.

House Committe on Judiciary

Majority Report:  Do pass with amendments.  (11)

      Signed by Representatives Appelwick, Chair; Crane, Vice Chair; Padden, Ranking Republican Member; Belcher, Hargrove, Inslee, P. King, Moyer, H. Myers, Patrick and Tate.

Minority Report:  Do not pass.  (6)

      Signed by Representatives Brough, Dellwo, R. Meyers, Scott, D. Sommers and Wineberry.

House Staff:Bill Perry (786-7123)

AS REPORTED BY COMMITTEE ON JUDICIARY MARCH 28, 1989

BACKGROUND:

Under current law, when a judgment has been assigned, the assignment may be filed with the county clerk in the county where the judgment was rendered.  A copy of the assignment may be filed with the clerk in any county where an abstract of the judgment has been filed.  Assignments must be acknowledged before an official such as a notary before they may be filed.  The filing of such an assignment acts as notice of the assignment to interested parties, such as title companies and potential purchasers of property affected by the assignment.

A procedure exists for the removal of judgment liens upon the satisfaction of the judgment.  A certificate of satisfaction of a judgment may be filed with the clerk of any county in which an abstract of the judgment has been filed.

Specific provisions also govern the commencement of judgment liens upon real property.  If the judgment is from a U.S. district or state superior court in the same county in which the property of the judgment debtor is located, the lien begins when the judgment is entered by the court.  If the judgment is from such a court in another county, or from the state supreme court or court of appeals, the lien begins when an abstract of the judgment is filed in the county in which the property is situated.  If the judgment is from a state district court in the county in which the property is located, the lien begins with the filing of a transcript of the judgment with the county clerk.  If the judgment is from a state district court in another county, the lien begins when a transcript of the judgment is filed with the county clerk in the county in which the property is located.

SUMMARY:

BILL AS AMENDED:  A copy of an assignment of a judgment must be recorded with the recording officer of the county in addition to being filed with the clerk of the court.  Assignments made to the Office of Support Enforcement are not required to be acknowledged when they are filed or recorded so long as they contain a declaration of accuracy signed under penalty of perjury.

The certificate, or certified copy, of a satisfaction of judgment issued by the clerk of the court must be filed with the recording officer of the county in which the judgment was entered.  The lien of the judgment is discharged upon the recording of the certificate of satisfaction.

The method of commencing a lien of a judgment on real estate is altered.  Such a lien is begun by recording a memorandum of the judgment with the recording officer of the county in which the real estate is situated.

The contents of a memorandum of a judgment are set forth.  The memorandum is to be executed by the judgment creditor.

County clerks are responsible for recording documents under this act.

AMENDED BILL COMPARED TO SUBSTITUTE:  The amendments make several grammatical and structural changes.  In addition, the original bill would have required judgment creditors, not county clerks, to record documents.  The original bill would have exempted assignments to the Office of Support Enforcement from all recording requirements, and would have required all memoranda of judgment to be acknowledged.

Fiscal Note:      Not Requested.

House Committee ‑ Testified For:    Jim Tompkins and Curt Johnson, Washington Land Title Association.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    Too often under the current law documents are not recorded and title problems arise.

House Committee - Testimony Against:      None Presented.