McGill Restoration v. Lion Place Condo. Assn. , 313 Neb. 658 ( 2023 )


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    www.nebraska.gov/apps-courts-epub/
    03/03/2023 09:05 AM CST
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    Nebraska Supreme Court Advance Sheets
    313 Nebraska Reports
    MCGILL RESTORATION V. LION PLACE CONDO. ASSN.
    Cite as 
    313 Neb. 658
    McGill Restoration, Inc., a Nebraska corporation,
    appellee, v. Lion Place Condominium Association,
    an unincorporated association, appellee,
    and Michael L. Henery, interested
    party, appellant.
    ___ N.W.2d ___
    Filed March 3, 2023.     Nos. S-21-934, S-22-137.
    1. Judgments: Appeal and Error. An appellate court independently
    reviews questions of law decided by a lower court.
    2. Statutes. Statutory interpretation presents a question of law.
    3. Jurisdiction: Appeal and Error. As a general matter, after an appeal
    has been perfected, the trial court is without jurisdiction to hear a case
    involving the same matter between the same parties.
    4. Judgments: Jurisdiction. A court action taken without subject matter
    jurisdiction is void.
    5. Judgments: Final Orders: Jurisdiction: Appeal and Error. A void
    order is a nullity which cannot constitute a judgment or final order that
    confers jurisdiction on an appellate court.
    6. Judgments: Jurisdiction: Appeal and Error. An appellate court has
    the power to determine it lacks jurisdiction over an appeal because the
    lower court lacked jurisdiction to enter the order; to vacate a void order;
    and, if necessary, to remand the cause with appropriate directions.
    Appeals from the District Court for Douglas County: Peter
    C. Bataillon, Judge. Judgment in No. S-21-934 reversed and
    remanded with directions. Judgment in No. S-22-137 vacated
    and dismissed.
    Theodore R. Boecker, Jr., of Boecker Law, P.C., L.L.O., for
    appellant.
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    313 Nebraska Reports
    MCGILL RESTORATION V. LION PLACE CONDO. ASSN.
    Cite as 
    313 Neb. 658
    Cody B. Nickel and Brian J. Koenig, of Koley Jessen, P.C.,
    L.L.O., for appellee.
    Heavican, C.J., Cassel, Stacy, Funke, Papik, and
    Freudenberg, JJ., and Marroquin, District Judge.
    Papik, J.
    Several years ago, McGill Restoration, Inc. (McGill),
    obtained a breach of contract judgment against Lion Place
    Condominium Association (the Association). In an effort to
    collect on that judgment, McGill and its successor-in-interest
    sought and obtained two writs of execution, both of which
    directed the county sheriff to levy execution against a con-
    dominium unit owned by one of the Association’s members,
    Michael L. Henery. The district court overruled motions to
    quash those writs filed by Henery, and he filed two appeals,
    both of which we address in this consolidated opinion. In
    Henery’s first appeal, we conclude that the district court should
    have sustained his motion to quash and therefore reverse the
    order overruling his motion to quash and remand the cause
    with directions to sustain the motion to quash. Additionally,
    we find that Henery’s first appeal divested the district court
    of jurisdiction over subsequent proceedings. Accordingly, we
    vacate the second writ of execution and dismiss his sec-
    ond appeal.
    BACKGROUND
    The Judgment.
    In 2009, the Association hired McGill to perform repair
    work on a condominium building, the individual units of
    which were owned by members of the Association. After
    McGill completed its work, a dispute arose between the par-
    ties. The Association was not satisfied with McGill’s work,
    while McGill claimed that the Association failed to pay McGill
    all that it was owed. The parties resorted to litigation, with
    McGill suing the Association and the Association asserting
    counterclaims against McGill. Following a bench trial, the
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    MCGILL RESTORATION V. LION PLACE CONDO. ASSN.
    Cite as 
    313 Neb. 658
    district court ruled for McGill and dismissed the Association’s
    counterclaims. The district court entered judgment in favor of
    McGill in the amount of $25,000 plus prejudgment interest.
    We affirmed that judgment on appeal. See McGill Restoration
    v. Lion Place Condo. Assn., 
    309 Neb. 202
    , 
    959 N.W.2d 251
     (2021). The appeals we take up in this opinion concern
    McGill’s efforts to collect on that judgment.
    First Writ of Execution.
    The judgment collection efforts at issue began with a prae-
    cipe for a writ of execution McGill filed in August 2021. The
    praecipe sought a writ directing the county sheriff to levy
    execution upon “Unit 201” of the Association pursuant to 
    Neb. Rev. Stat. § 76-875
    (a) (Reissue 2018), which provides that “a
    judgment for money against [a condominium] association . . .
    is a lien in favor of the judgment lienholder against all of the
    units in the condominium.” The writ of execution issued.
    Henery filed a motion to quash the writ of execution. In his
    motion, Henery contended that the writ of execution should
    be quashed for several reasons. Among his arguments was
    a contention that McGill could not levy execution against
    Unit 201, because the judgment was entered against the
    Association, but he owned the unit. He acknowledged that
    under § 76-875(a), McGill had a lien against each of the units
    of the Association, but he asserted that if McGill wished to
    enforce that lien, it needed to initiate foreclosure proceedings
    rather than pursue execution. At a hearing on the motion to
    quash, Henery offered an affidavit in which he asserted that
    he owned Unit 201.
    The district court overruled McGill’s motion to quash. In
    November 2021, Henery timely appealed the overruling of
    his motion to quash, and that appeal was docketed as case
    No. S-21-934.
    Second Writ of Execution.
    In December 2021, McGill filed another praecipe for a
    writ of execution. In that praecipe, McGill sought a writ
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    MCGILL RESTORATION V. LION PLACE CONDO. ASSN.
    Cite as 
    313 Neb. 658
    of execution directing the county sheriff to levy execution
    against not just Unit 201, but also several other condominium
    units owned by members of the Association. The praecipe
    again sought the writ of execution pursuant to § 76-875(a).
    After the issuance of the writ of execution, McGill assigned
    its right to the judgment against the Association to another
    entity. For ease of discussion, however, we will refer to McGill
    and its successor-in-interest collectively as McGill.
    Henery again moved to quash the writ of execution, and the
    district court again overruled his motion. Henery appealed the
    overruling of his motion to quash, and that appeal was dock-
    eted as case No. S-22-137.
    ASSIGNMENTS OF ERROR
    Henery assigns and argues that, for a number of reasons,
    the district court erred by overruling his motions to quash.
    To resolve these appeals, we need mention only one of those
    assignments of error, which we rephrase slightly: that the dis-
    trict court erred by failing to quash a writ of execution ordering
    the sheriff to levy execution against property not owned by the
    judgment debtor.
    STANDARD OF REVIEW
    [1] An appellate court independently reviews questions of
    law decided by a lower court. Lassalle v. State, 
    307 Neb. 221
    ,
    
    948 N.W.2d 725
     (2020).
    [2] Statutory interpretation presents a question of law. State
    v. Godek, 
    312 Neb. 1004
    , 
    981 N.W.2d 810
     (2022).
    ANALYSIS
    Henery’s First Appeal.
    We begin our analysis with Henery’s first appeal, which
    challenges the district court’s overruling of his first motion to
    quash. We have appellate jurisdiction of that order, because it
    is an order that affects a substantial right made on summary
    application in an action after a judgment is rendered. See
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    MCGILL RESTORATION V. LION PLACE CONDO. ASSN.
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    Western Ethanol Co. v. Midwest Renewable Energy, 
    305 Neb. 1
    , 
    938 N.W.2d 329
     (2020). See, also, 
    Neb. Rev. Stat. § 25-1902
    (Cum. Supp. 2022).
    As for the merits of this appeal, Henery argues, as noted
    above, that his motion to quash should have been granted
    because the writ of execution at issue authorized the county
    sheriff to levy execution on Unit 201. Henery contends that
    execution can be levied only on property that the judgment
    debtor owns, that he owns Unit 201, and that he is not the
    judgment debtor.
    We agree with Henery that, with the exception of a circum-
    stance not present here, Nebraska law does not authorize a
    court to order a sheriff to levy a writ of execution on property
    in which the judgment debtor does not hold an interest. As we
    will explain, this principle is established in both the statutes
    governing execution and our precedent.
    Beginning with the execution statutes, 
    Neb. Rev. Stat. § 25-1502
     (Reissue 2016) provides, “Executions are of two
    kinds: (1) Against the property of the judgment debtor, and (2)
    for delivery of the possession of real property with damages
    for withholding the same and costs.” No mention is made of
    execution against property owned by persons other than the
    judgment debtor.
    In addition, 
    Neb. Rev. Stat. § 25-1516
    (1) (Reissue 2016)
    discusses writs of execution and provides that a judgment cred-
    itor can obtain a writ of execution to levy on only the judgment
    debtor’s personal or real property interests:
    The writ of execution against the property of the debtor
    issuing from any court of record of this state shall com-
    mand the officer to whom it is directed that of the goods
    and chattels of the debtor he or she cause to be made the
    money specified in the writ, and for want of goods and
    chattels he or she cause the same to be made of the lands
    and tenements of the debtor.
    (Emphasis supplied.)
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    MCGILL RESTORATION V. LION PLACE CONDO. ASSN.
    Cite as 
    313 Neb. 658
    Consistent with § 25-1516(1), 
    Neb. Rev. Stat. § 25-1518
    (Reissue 2016) directs an officer receiving a writ of execu-
    tion to execute against either the judgment debtor’s per-
    sonal property or, failing that, the judgment debtor’s available
    real property:
    The officer to whom a writ of execution is delivered
    shall proceed immediately to levy the same upon the
    goods and chattels of the debtor; but if no goods and chat-
    tels can be found, the officer shall endorse on the writ of
    execution no goods, and forthwith levy the writ of execu-
    tion upon the lands and tenements of the debtor, which
    may be liable to satisfy the judgment.
    (Emphasis supplied.)
    We relied on these statutes in Fox v. Whitbeck, 
    286 Neb. 134
    , 
    835 N.W.2d 638
     (2013), to hold that generally, a court
    lacks the authority to order the sheriff to levy execution on
    property in which the judgment debtor does not hold an inter-
    est. In that case, a father failed to pay court-ordered child sup-
    port and therefore a statutory lien attached to the father’s real
    property. The mother then sought an execution sale of property
    the father had previously owned but that had since been trans-
    ferred to a third party. The third party unsuccessfully objected
    to confirmation of the execution sale. On appeal, however, we
    explained that while the mother was correct that a statutory
    lien attached to the father’s property and that the third-party
    purchaser took the property subject to that lien, execution
    was available only if the mother showed that the father “still
    had an interest in the property or that he had fraudulently
    transferred it.” Id. at 140, 835 N.W.2d at 643. Because the
    father no longer had an interest in the property and there was
    no allegation of a fraudulent transfer, we reversed the district
    court’s order and remanded the cause with directions to vacate
    its order confirming the execution sale.
    McGill makes no argument in this case that judgment
    was entered against Henery personally or that the Association
    holds an interest in Unit 201. Neither is there any suggestion
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    MCGILL RESTORATION V. LION PLACE CONDO. ASSN.
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    313 Neb. 658
    of a fraudulent transfer. Instead, McGill’s argument that the
    district court could order an execution sale of Unit 201 not-
    withstanding Henery’s ownership thereof is premised entirely
    on § 76-875(a). Relevant here, that statute provides that a
    judgment for money against a condominium association “is
    not a lien on the common elements, but is a lien in favor of
    the judgment lienholder against all of the units in the condo-
    minium at the time the judgment was entered.” § 76-875(a).
    This language, McGill contends, extends a judgment lien
    against a condominium association so that it applies to each
    of the individual units of the association, and thus the statute
    allows a judgment creditor to properly execute on those indi-
    vidual units.
    McGill’s argument requires that we interpret § 76-875(a). In
    doing so, our focus is, as always, identifying the plain and ordi-
    nary meaning of the statutory language, understood in context,
    and then giving effect to that meaning. See In re Guardianship
    of Eliza W., 
    304 Neb. 995
    , 
    938 N.W.2d 307
     (2020).
    We do not read the text of § 76-875(a) to provide that a
    party who obtains a judgment for money against a condo-
    minium association is entitled to execute against any of the
    units in the condominium. There is no language in that statute
    providing that execution may be levied against individual units
    nor is there language providing that the owners of individual
    units are to be treated as the judgment debtor for execution
    purposes. While § 76-875(a) certainly provides that a judgment
    against a condominium association will result in a lien against
    each of its units, our decision in Fox, 
    supra,
     makes clear that
    the fact that a statutory lien attaches to property does not
    mean that the judgment creditor is entitled to execute against
    that property.
    Because we understand § 76-875(a) to result in nothing
    beyond a lien against the individual units and the Association
    held no interest in Unit 201, it follows that McGill was not
    entitled to execute against Unit 201. As we have discussed, the
    execution statutes permit a court to order a sheriff to levy a
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    MCGILL RESTORATION V. LION PLACE CONDO. ASSN.
    Cite as 
    313 Neb. 658
    writ of execution on property only if the judgment debtor has
    an interest in the property or fraudulently transferred it. We
    could find that McGill was entitled to execute against the unit
    owned by Henery only by reading additional meaning into the
    execution statutes or § 76-875(a). That is not, however, how
    we interpret statutes. See, e.g., Parks v. Hy-Vee, 
    307 Neb. 927
    ,
    
    951 N.W.2d 504
     (2020).
    Because we find that the district court was not authorized to
    order execution on Unit 201 as McGill requested, we reverse
    the order overruling the motion to quash and remand the cause
    with directions for the district court to sustain the motion
    to quash.
    Henery’s Second Appeal.
    Henery’s second appeal challenges the district court’s over-
    ruling of his motion to quash the writ of execution McGill
    requested in December 2021. Because this writ of execution
    was requested after Henery filed his first appeal in November
    2021, it presents a jurisdictional issue that we must confront
    before considering the merits of Henery’s appeal. See Keef
    v. State, 
    262 Neb. 622
    , 626, 
    634 N.W.2d 751
    , 756 (2001)
    (“[b]efore reaching the legal issues presented for review, it is
    the duty of an appellate court to determine whether it has juris-
    diction over the matter before it”).
    [3] As a general matter, after an appeal has been perfected,
    the trial court is without jurisdiction to hear a case involv-
    ing the same matter between the same parties. McLaughlin
    v. Hellbusch, 
    251 Neb. 389
    , 
    557 N.W.2d 657
     (1997). Here,
    Henery perfected his appeal of the district court’s order over-
    ruling his first motion to quash in November 2021. We must
    therefore determine if the district court was divested of subject
    matter jurisdiction during the pendency of that appeal.
    While the filing of an appeal generally divests a lower
    court of subject matter jurisdiction during the pendency of an
    appeal, an appeal will not always preclude a court from enforc-
    ing a judgment. When a party has obtained a judgment and
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    MCGILL RESTORATION V. LION PLACE CONDO. ASSN.
    Cite as 
    313 Neb. 658
    a supersedeas bond has not been filed, the court retains juris-
    diction to enforce the terms of the judgment even if an appeal
    has been filed. See, e.g., Kula v. Kula, 
    180 Neb. 893
    , 
    146 N.W.2d 384
     (1966); Kricsfeld v. Kricsfeld, 
    8 Neb. App. 1
    , 
    588 N.W.2d 210
     (1999).
    In this case, however, McGill did not ask the district court
    to enforce the terms of a nonsuperseded judgment while the
    merits of that judgment were being challenged on appeal.
    Instead, McGill sought and obtained the issuance of a writ of
    execution that ordered the sheriff to levy execution against
    Unit 201 while an appeal was pending in which Henery sought
    to challenge the district court’s earlier overruling of a motion
    to quash a writ of execution that did the same. The proceedings
    following Henery’s first appeal thus fall within the general rule
    that during the pendency of an appeal, the trial court is without
    jurisdiction to hear a case involving the same matter between
    the same parties. The district court lacked subject matter juris-
    diction of all proceedings concerning the writ of execution
    McGill requested in December 2021.
    [4,5] Because the district court lacked jurisdiction of
    proceedings concerning the writ of execution requested in
    December 2021, it follows that we too lack jurisdiction of
    Henery’s second appeal. A court action taken without subject
    matter jurisdiction is void. In re Interest of Trey H., 
    281 Neb. 760
    , 
    798 N.W.2d 607
     (2011). And a void order is a nullity
    which cannot constitute a judgment or final order that confers
    jurisdiction on an appellate court. 
    Id.
    [6] While we lack jurisdiction to address the merits of a
    void order, that does not mean we must allow void orders to
    stand. An appellate court has the power to determine it lacks
    jurisdiction over an appeal because the lower court lacked
    jurisdiction to enter the order; to vacate a void order; and, if
    necessary, to remand the cause with appropriate directions.
    
    Id.
     Because all proceedings concerning the writ of execution
    McGill requested in December 2021 were void, we vacate
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    MCGILL RESTORATION V. LION PLACE CONDO. ASSN.
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    313 Neb. 658
    that writ of execution and dismiss Henery’s second appeal for
    lack of jurisdiction.
    CONCLUSION
    The district court lacked authority to order the sheriff to
    levy execution on Unit 201. Accordingly, we reverse the dis-
    trict court’s order overruling Henery’s motion to quash in case
    No. S-21-934 and remand the cause with directions to sustain
    Henery’s motion to quash. We find that the district court lacked
    jurisdiction over proceedings concerning the writ of execution
    requested in December 2021 and therefore vacate that writ of
    execution and dismiss the appeal in case No. S-22-137.
    Judgment in No. S-21-934 reversed
    and remanded with directions.
    Judgment in No. S-22-137 vacated
    and dismissed.
    Miller-Lerman, J., not participating.