Opinion ID: 883427
Heading Depth: 1
Heading Rank: 5

Heading: issues

Text: Did the District Court err in granting summary judgment in favor of the bank on the Robinsons' declaratory action? The Robinsons brought an action in District Court for a declaratory judgment ordering that the mortgage the bank held on the Robinsons' Montana property be declared null and void. In that action, the Robinsons claimed the bank's mortgage was invalid for two reasons  there was a failure of consideration for the mortgage and the eight-year statute of limitations for foreclosing on a mortgage, § 27-2-202(1), MCA, had expired. The Robinsons also claimed that the mortgage slandered the title to their property. They did not, however, set forth an argument for their claim of slander in either the District Court or this Court, and therefore, we will not address the merits of that claim. See Allmaras v. Yellowstone Basin Properties (1991), 248 Mont. 477, 483, 812 P.2d 770, 773. In considering the Robinsons' first two claims, the District Court granted summary judgment in favor of the bank. The court determined that there were no questions of fact and the bank was entitled to judgment as a matter of law. The standard we employ in reviewing a district court's summary judgment is the same as that employed by the district court. Summary judgment is proper only when there are no genuine issues of material fact and the moving party is entitled to judgment as a matter of law. Klawitter v. Dettmann (1995), 268 Mont. 275, 886 P.2d 416. The Robinsons claim a question of fact exists as to whether consideration was given for the mortgage. The court determined that the Wyoming judgment resolved the issue of whether there was consideration for both the promissory note and the mortgage executed by the Robinsons. The court concluded there was no question of fact and principles of res judicata barred relitigation of this claim as a matter of law. The Robinsons assert that the Wyoming consent judgment was based solely on consideration for the promissory note, while the mortgage is the subject of the present action. The Wyoming consent judgment, however, stated that [a]ll mortgages and security interests ... shall ... secure the payment of this judgment. By this statement, the Robinsons agreed that the consideration for the mortgage is security of the judgment. The Robinsons did not appeal the consent judgment. In HKM Assoc. v. Northwest Pipe Fittings (1995), [272 Mont. 187], 900 P.2d 302, 305, we set out a three-part test for collateral estoppel. Collateral estoppel bars an action ... when: (1) the issue presented in a later action has been decided in a prior adjudication; (2) a final judgment in the action was issued; and (3) the party against whom collateral estoppel is asserted was a party to the previous litigation. HKM Assoc., 900 P.2d at 305 (citing Berlin v. Boedecker (1994), 268 Mont. 444, 453, 887 P.2d 1180, 1185; Farmers Plant Aid, 879 P.2d at 1176). In the instant case, the Robinsons raise the issue of whether there was consideration for the mortgage. The Wyoming consent judgment recognized that the mortgage was valid and secured payment of the judgment thereby resolving the identical issue now presented. Additionally, there was a final judgment that held the mortgage was valid, and finally, the Robinsons were a party to both the Wyoming judgment and the declaratory action before us. We therefore conclude that the Robinsons are estopped from claiming there was no consideration for the mortgage. Although our conclusion is based on collateral estoppel rather than res judicata, we will uphold the result reached by the District Court since it is correct, regardless of the reason given for it. See Lindey's v. Goodover (1994), 264 Mont. 449, 453, 872 P.2d 764, 766. We therefore hold that the District Court did not err in finding there was no question of fact and that the Robinsons' first claim should be dismissed. The Robinsons argued in their motion to the District Court for summary judgment that they were entitled to an order declaring the mortgage invalid since eight years had passed from when the mortgage became due and its foreclosure was barred by the statute of limitations in § 27-2-202(1), MCA. The District Court, while noting that the Wyoming judgment ordered that the mortgage secure the payment of the promissory note, went on to analyze the issue in the context of a judgment lien. In ultimately holding that the statute of limitations had not run on the execution of a judgment lien, the court denied the Robinsons' motion and granted the bank's motion for summary judgment instead. The Robinsons argued on appeal that the issue was the validity of the mortgage and again urged that the eight year statute of limitations had expired and the mortgage is therefore invalid and unenforceable. As we have noted, in the Wyoming consent judgment the parties agreed to the order which provided that the mortgage shall continue in effect and secure the payment of this judgment until such time this judgment has been fully paid and satisfied. According to the order, the Robinsons and the bank agreed to extend the mortgage until the judgment was paid. This Court has held that parties may agree to extend the life of a mortgage. Aitken v. Lane (1939), 108 Mont. 368, 375, 92 P.2d 628, 630. We conclude that the Wyoming consent judgment tolled the statute of limitations until the underlying obligation was paid, and therefore, the statute of limitations had not yet begun to run on the enforcement of the bank's mortgage. Since the Robinsons agreed to toll the statute of limitations in the Wyoming consent judgment, they cannot now argue that the eight year statute under § 27-2-202(1), MCA, has run on the mortgage. This Court however makes no determination as to the effect of the tolled statute of limitations in regard to the mortgage. Although we do not follow its reasoning, we agree with the District Court's result on the issue of whether the statute of limitations has expired. See Lindey's, 872 P.2d at 766. Therefore, we conclude that the District Court did not err in holding that the statute of limitations had not run on the execution of a judgment lien. In summary, the District Court's April 14, 1994, order is properly before this court due to the consolidations of the two district court actions. We reverse the District Court's ruling that 28 U.S.C. § 1963 created a new judgment for purposes of the six year period for issuing a writ of execution found in § 25-13-101, MCA, and conclude that the bank's writ is quashed because of the expiration of that period. We further conclude that the bank properly filed a transcript of the Montana federal court judgment in state court pursuant to § 25-9-303(1), MCA. Although we rely on other grounds, we affirm the District Court's grant of summary judgment in the declaratory judgment action in favor of the bank on the Robinsons' claim that the mortgage is invalid due to a lack of consideration. Finally, we again rely on other grounds to affirm the District Court's granting of summary judgment in favor of the bank in the declaratory judgment action on the Robinsons' statute of limitations argument. The parties clearly agreed to toll the statute of limitations for foreclosing on the mortgage until the judgment was satisfied. TURNAGE, C.J., and HUNT, J., concur.