Chrysler Credit Corp. v. Rosenberger, 92-1734

• Decision Date: 23 February 1994
• Docket Number: No. 92-1734,92-1734
• Citation: 512 N.W.2d 303
• Parties: CHRYSLER CREDIT CORP., Appellee, v. Doris ROSENBERGER, Appellant, and Roseway Inc. and David C. Rosenberger, Double D, Inc. and Double D Leasing, Inc., Defendants.
• Court: Iowa Supreme Court

Page 303

512 N.W.2d 303

CHRYSLER CREDIT CORP., Appellee, v. Doris ROSENBERGER, Appellant, and Roseway Inc. and David C. Rosenberger, Double D, Inc. and Double D Leasing, Inc., Defendants.

No. 92-1734.

Supreme Court of Iowa.

Feb. 23, 1994.

George T. Qualley, Sioux City, for appellant.

Mark D. Sherinian of Hanson, Bjork & Russell, Des Moines, for appellee.

Considered by LARSON, P.J., and CARTER, LAVORATO, NEUMAN, and TERNUS, JJ.

LARSON, Justice.

Doris Rosenberger, judgment debtor in an action filed by Chrysler Credit Corporation, has appealed from an order denying her motion to stay execution on the judgment under which Chrysler sought to levy on Rosenberger's separate cause of action, against Chrysler, in federal court. We affirm.

Roseway, Inc., a corporation owned solely by David and Doris Rosenberger, leased trucks and trailers from Chrysler Credit Corporation. The Rosenbergers personally guaranteed the leases. In June 1989, Roseway, Inc. filed bankruptcy. In October 1989, Chrysler obtained a substantial judgment against the Rosenbergers, on their guarantee, in the Polk County District Court.

In January 1990, David Rosenberger was placed in involuntary bankruptcy. In April 1990, the Rosenbergers filed a suit in federal district court against Chrysler and eleven other defendants, alleging fraud, breach of contract, and violations of the federal racketeering act. David Rosenberger's trustee in bankruptcy apparently sold his interest in the suit, and he is no longer involved.

As the matter now stands, Chrysler has a $718,000 judgment against Doris in Polk County District Court (this case) and Doris has a claim for $10,000,000 against Chrysler and the other defendants pending in federal court. Chrysler is attempting to levy on Doris's federal claim against Chrysler and the others, and the question is whether it may legally do so.

At common law one could not levy on a cause of action, but this has been changed by statute. Iowa Code section 626.21 (1991) provides:

Judgments, money, bank bills, and other things in action may be levied upon, and sold or appropriated thereunder, and an assignment thereof by the officer shall have the same effect as if made by the defendant.

We have held that a cause of action is one of the "other things in action" that may be reached under section 626.21. Arbie Mineral Feed v. Farm Bureau Mut. Ins. Co., 462 N.W.2d 677, 680 (Iowa 1990); Citizens State Bank v. Hansen, 449 N.W.2d 388, 389 (Iowa 1989).

While this defendant does not challenge the right in general of a judgment creditor to levy on a cause of action, she argues that applying the law in her case is unconstitutional because it would deny her access to the courts and deprive her of property without due process. In addition, she claims it was an abuse of the court's discretion to deny the stay.

Iowa Code section 626.58 provides that a stay of execution on a money judgment "may" be granted under certain circumstances. The parties agree that the granting of a stay lies in the discretion of the district court. See Brenton Bros. v. Dorr, 213 Iowa 725, 729, 239 N.W. 808, 810 (1924). We have said that a decision on the granting of a stay will not be disturbed unless the discretion "is capriciously exercised or abused." Id. An applicant for stay must show

why judgment should not be enforced against him at the present time...