In re Marriage of Gutfreund and Hughes, No. 05SC902.

• Decision Date: 20 November 2006
• Docket Number: No. 05SC902.
• Citation: 148 P.3d 136
• Parties: In re the MARRIAGE OF Jeffrey S. GUTFREUND, Petitioner and Margaret HUGHES, Respondent.
• Court: Colorado Supreme Court

148 P.3d 136

In re the MARRIAGE OF Jeffrey S. GUTFREUND, Petitioner and Margaret HUGHES, Respondent.

No. 05SC902.

Supreme Court of Colorado, En Banc.

November 20, 2006.

Fleishman & Shapiro, P.C., A. Craig Fleishman, Denver, Colorado, Attorney for Petitioner.

Margaret Hughes, Pro Se, Denver, Colorado.

Justice MARTINEZ delivered the Opinion of the Court.

We granted certiorari in this case to consider whether depositing funds in a court registry stops post-judgment interest from accruing, and whether a party may seek post-judgment interest on attorneys' fees awarded to the attorney.¹ The court of appeals found that a deposit of funds into the court registry that does not allow access to funds by the opposing party does not satisfy the judgment and thus does not stop post-judgment interest from accruing. The court of appeals also found that post-judgment interest is required on attorneys' fees and may be sought by a party even if the fees were awarded to the attorney. We affirm in part, reverse in part, and remand with directions.

We hold that when Jeffrey Gutfreund ("Husband") deposited funds in the court registry in lieu of bond, in the amount of the judgment, he did not satisfy the judgment because Margaret Hughes ("Wife") had no access to the funds. No satisfaction of a judgment can occur if the debtor's payment is not accessible to the judgment creditor. Until such time as the funds are accessible to the judgment creditor, the judgment debtor is bound to pay statutory interest on the debt.

We also hold that statutory interest is required on all judgments for money where the debtor appeals and the award is affirmed. The judgment debtor must pay interest on attorneys' fees from the date of judgment to the date those funds are accessible to the creditor, whether that be the spouse or the spouse's attorney. However, unlike the court of appeals, we do not reach the issue of whether Wife may receive the post-judgment interest on attorneys' fees awarded directly to her attorney by the trial court.

I. Facts and Procedural History

After Wife and Husband sought a divorce, the trial court issued a divorce decree and permanent orders in September 2002. In the permanent orders, the trial court required that Husband pay Wife $170,000 to cover disparities in the property distribution and $37,500 for Wife's attorneys' fees, for a total of $207,500. Husband appealed the order.

In preparing the appeal, Husband filed a motion to place funds, equal to the amount of the judgment, in the court registry for Arapahoe County in lieu of posting appellate bond. Unbeknownst to Husband, monies held by the court registry for Arapahoe County do not accrue interest. After the trial court granted the motion, Husband deposited $221,600 into the court registry. In addition to the $207,500 required by the court, Husband deposited an additional $13,600 to cover interest on the property for one year at eight percent. He did not provide similar funds to pay interest on the property beyond the first year.

Although Husband deposited funds to cover interest on the property distribution for one year, Husband made no contribution to the court registry to cover interest on Wife's attorneys' fees. Neither Wife nor Wife's attorney specifically asserted any right to statutory interest on the attorneys' fees at the time of the appeal.

The court of appeals affirmed the trial court's permanent order in September 2004. When the funds were released, Wife learned that Husband did not deposit funds in an interest-bearing account and only deposited sufficient funds for twelve months of interest on the marital property. Wife petitioned the trial court for interest on the property for the period commencing twelve months after the judgment to the date the funds were released. Wife also asserted a right to interest on the attorneys' fees portion of the order. Husband countered that he satisfied the judgment when he placed funds in the court registry and does not owe any post-judgment interest. Husband also argued that Wife's attorney, and by extension Wife, abandoned any right to post-judgment interest on attorneys' fees when the attorney stated in a motion for an attorneys' lien on the judgment that "[a] dispute has arisen between the parties concerning the interest to be applied to respondent's judgment, however, such matter does not concern [our firm]'s interests."

Without reaching the question of whether Wife or Wife's attorney was entitled to recover post-judgment interest, the trial court ruled against Wife, holding that post-judgment interest did not accrue once Husband deposited the $221,600 into the court registry. Wife appealed. First, Wife argued that Husband owed statutory interest on the marital property for the length of the appeal. Second, Wife argued that Husband owed statutory interest on the attorneys' fees for the length of the appeal.

In an unpublished opinion, the court of appeals awarded Wife both the interest on the marital property and interest on the attorneys' fees. Gutfreund, slip op. at 9. The court of appeals held that section 5-12-106(1)(a), C.R.S. (2006), requires post-judgment interest on both the marital property and attorneys' fees. Id. at 9. We granted certiorari to review the decision of the court of appeals.

II. Analysis

Husband argues that the court of appeals erred when it held that his payment to the court registry did not satisfy the judgment and thus relieved him of any obligation to pay post-judgment interest. He further argues that the court of appeals erred in awarding post-judgment interest on attorneys' fees. In reviewing the court of appeals' decision, we begin by analyzing the plain language of the Colorado Revised Statutes section 5-12-106(1)(a). We then apply the statute to the facts in the present case. We find that the court of appeals properly determined that Husband's payment to the court registry was not accessible to Wife and consequently did not satisfy his debt. We also conclude that the court of appeals correctly held that section 5-12-106(1)(a) requires post-judgment interest on attorneys' fees, but we leave for the trial court whether Wife or Wife's attorney will receive the interest on attorneys' fees awarded directly to Wife's attorney.

A. Satisfaction of the Judgment

When construing a statute, this Court starts with its plain language, to give effect to the ordinary meaning adopted by the General Assembly. In re Marriage of Chalat, 112 P.3d 47, 54 (Colo.2005). The statute should be construed as written, because we presume that the General Assembly means what it clearly states. Colo. Water Conservation Bd. v. Upper Gunnison River Water Conservancy Dist., 109 P.3d 585, 591 (Colo.2005). This Court construes statutes "as a whole in order to give consistent, harmonious, and sensible effect to all of its parts." Bd. of County Comm'rs, Costilla County v. Costilla County Conservancy Dist., 88 P.3d 1188, 1192 (Colo.2004) (quoting People v. Luther, 58 P.3d 1013, 1015 (Colo. 2002)); see also Mountain City Meat Co. v. Oqueda, 919 P.2d 246, 253 (Colo.1996).

We turn now to the plain language of section 5-12-106(1)(a), which states in part:

If a judgment for money in a civil case is appealed by a judgment debtor and the judgment is affirmed, interest . . . shall be payable from the date of entry of judgment in the trial court until satisfaction of the judgment and shall include compounding of interest annually.

§ 5-12-106(1)(a).

This language illustrates two separate but relevant points: first, that appealing judgment debtors pay interest on the judgment when the appeal is affirmed, and second, that debtors appealing a judgment for money pay interest on the judgment sum "from the date of entry of judgment in the trial court until satisfaction of the judgment." § 5-12-106(1)(a). While the statute does not define "satisfaction," a party satisfies a debt when the creditor has been paid and the debtor is no longer obligated to pay that portion of the amount due. Hohn v. Morrison, 870 P.2d 513, 516 (Colo.App.1993).

While the Colorado Supreme Court has not previously applied the language of section 5-12-106(1)(a), the court of appeals has addressed the question of judgment satisfaction on various occasions. In each instance, the court of appeals held that post-judgment interest is mandatory until the debt is satisfied. See Bassett v. Eagle Telecomms., Inc., 750 P.2d 73 (Colo.App.1987); Jennings v. Ibarra, 921 P.2d 62 (Colo.App.1996); Bainbridge, Inc. v. Douglas County Sch. Dist. RE-1, 973 P.2d 684 (Colo.App.1998). All three of the aforementioned cases concerned creditors with no access to funds deposited while the case was on appeal. In each instance, the court of appeals awarded interest on the amount owed from the date of judgment to the date the funds could be accessed by the creditor. The most recent case, Bainbridge, concerned a creditor that did not make a claim for post-judgment interest until three years after satisfaction. Bainbridge, 973 P.2d 684. Even then, the court of appeals required that interest be paid.

Since 1987, the Bassett line of cases has served as the uncontroverted authority on post-judgment interest under section 5-12-106(1)(a). Husband contends that the more recent court of appeals decision, E-470 Public Highway Authority v. 455 Co., 997 P.2d 1273 (Colo.App.1999), provides an exception to the Bassett requirement of interest when the funds are not immediately accessible.

In E-470, the Public Highway Authority brought a condemnation action to acquire property from several landowners for use in construction of a new turnpike. A condemnation award was entered and the money was deposited in the court registry for immediate distribution to the various landowners. Under the applicable statute, section 38-1-105(6)(b), C.R.S. (2006), the funds were available for immediate withdrawal under the condition that all parties with a financial interest in the property to be acquired...