Opinion ID: 2212470
Heading Depth: 1
Heading Rank: 2

Heading: Establishment of Lien by Levy on a Judgment.

Text: Rule 260 of the Iowa Rules of Civil Procedure states: Levy on personalty may be made under an attachment or general execution by either of the following methods, but no lien is created until compliance with one of them. (a) By the officer taking possession of the property, and appending to the execution its exact description at length, with the date of the levy, and affixing his signature; or (b) If the creditor or his agent first so requests in writing, the officer may view the property, inventory its exact description at length, and append such inventory to the execution, with his signed statement of the number and title of the case, the amount claimed under the execution, the exact location of the property and in whose possession and the last known address of the judgment debtor; and, ... file with the secretary of state his certified transcript of such inventory and statement.... The trial court held that even though there was not strict compliance with rule 260, Arbie nevertheless had a valid lien on any judgment allocated to Elgin. The court further held that the defendants, with actual knowledge of Arbie's lien, were under a duty to preserve the assets arising from the action to satisfy that lien. The court concluded that in circumventing Arbie's lien by entering into the rule 226 settlement, the defendants committed fraud against Arbie. The defendants argue that Arbie did not have a valid lien because rule 260 was not followed. They also urge that even if there were a valid lien, such would not create a duty on their part to preserve assets for Arbie. They also challenge the sufficiency of the evidence to support the amount of actual damages awarded and the amount and propriety of the punitive damages awarded. Because we find that there was no valid lien, we do not reach these other issues. Arbie urges that its levy was valid under either rule 260 or section 626.22. Section 626.22 states: The levy upon a judgment shall be made by entering upon the judgment docket a memorandum of such fact, giving the names of the parties plaintiff and defendant, the court from which the execution issued, and the date and hour of such entry, which shall be signed by the officer serving the execution, and a return made on the execution of the officer's doings in the premises. The defendants urge that only rule 260 is applicable and that its requirements were not met. Even if we assume that section 626.22 is applicable, the problem with the levy in this case under either section 626.22 or rule 260 is that there was no judgment in existence at the time of the levy. Section 626.22 deals with the levy on a judgment.... Here there was no judgment in the insurance claim action on August 13, 1984, the date of the purported levy. In fact, there was never a judgment, or any part thereof, awarded to Elgin. Similarly, rule 260 deals with [l]evy on personalty. Personalty is synonymous with personal property. Black's Law Dictionary 1030 (5th ed. 1979). Obviously, a judgment which has never existed cannot be property. Thus, it cannot be levied upon. We hold that a judgment may not be levied upon until it has been entered. Once a judgment has been entered, of course, it may be levied upon. See, e.g., Edwards v. Tracy, 203 Iowa 1083, 212 N.W. 317 (1927). Here, however, there was never a judgment entered in favor of the judgment debtor, Elgin. Arbie had another option available to it, however.