Legal Research AI

Coastcom, Inc. v. Cruzen

Court: Court of Appeals of Tennessee
Date filed: 1998-05-29
Citations: 981 S.W.2d 179
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21 Citing Cases

                  IN THE COURT OF APPEALS OF TENNESSEE,
                              AT NASHVILLE

            _______________________________________________________

                                         )
COASTCOM, INC.,                          )       Williamson Chancery Court
                                         )       Nos. 24333 & 24353
   Plaintiff/Appellee.                   )
                                         )
VS.                                      )       C.A. No. 01A01-9707-CH-00349
                                         )
GLEN CRUZEN, et ux, et al,               )
                                         )
   Defendants/Appellants.                )
                                         )               FILED
______________________________________________________________________________
                                                                  May 29, 1998
From the Chancery Court of Williamson County at Franklin.
Honorable H. Denmark Bell, Chancellor                          Cecil W. Crowson
                                                             Appellate Court Clerk


Glen Cruzen, Pro Se



James David Nave, BAKER, DONELSON, BEARMAN & CALDWELL, Nashville, Tennessee
Attorney for Plaintiff/Appellee.



OPINION FILED:

AFFIRMED AND REMANDED


                                     FARMER, J.

CRAWFORD, P.J., W.S.: (Concurs)
LILLARD, J.: (Concurs)
               This matter emanates from three judgments which Coast Publishing, Inc., obtained

against Glen Cruzen and Helen Cruzen d/b/a Image Express and Desktop Systems in the state of

Florida. Coastcom, Inc. (formerly known as Coast Publishing, Inc.), brought an action in the

Chancery Court of Williamson County to enforce certain judgment liens recorded in the office of

the register of deeds of that county against real property owned by defendant Helen Cruzen.1

Defendant Glen Cruzen brought a separate action titled “Claim for Fraud and Misrepresentation.”

The trial court treated this as an answer and counterclaim to Coastcom’s complaint and consolidated

the two actions. Both Coastcom and Glen Cruzen filed motions for summary judgment. The trial

court granted Coastcom’s motion, denied Cruzen’s, and this appeal followed.



               Pursuant to the Uniform Enforcement of Foreign Judgments Act, T.C.A. § 26-6-101

et seq., Coastcom filed in the Chancery Court of Davidson County a petition to domesticate the first

and second foreign judgments. The Cruzens were personally served with summons and responded

that the Florida judgments were illegally obtained because the Florida court had improperly denied

a motion for a continuance, that Coastcom had made misrepresentations to the Florida court, and that

the first foreign judgment was being appealed in the state of Florida. These two actions were

consolidated, and Coastcom filed a motion to enforce the foreign judgments which was granted.

Coastcom then filed a writ of execution, and a writ was directed to the sheriff of Williamson County

to levy on two vehicles. A temporary restraining order was granted pursuant to a motion because

the Cruzens’ appeal of the first Florida judgment was still pending. 2 Following an unsuccessful

appeal in Florida, Mr. Cruzen, acting pro se and attempting to act for Ms. Cruzen as well, filed a

motion pursuant to Rule 60 T.R.C.P. asking that the foreign judgments be set aside. The trial court

denied that motion and granted Coastcom’s motion to dissolve the injunction, thus permitting

Coastcom to proceed with enforcement of the foreign judgments. Coastcom then filed in the



       1
        Additional defendants were Scott D. Brison, Christine A. Brison, and City Federal
Savings Bank. None of these defendants are parties to this appeal. The Brisons were the
grantors in the deed to Helen Cruzen. She assumed a deed of trust which the Brisons had given
to secure an indebtedness to City Federal Savings Bank. Glen and Helen Cruzen also executed a
deed of trust given to secure an indebtedness to the Brisons simultaneous with the conveyance to
Helen Cruzen.
       2
         26-6-106. Appeal or stay of judgment. -- (a) If the judgment debtor shows the court of
this state that an appeal from the foreign judgment is pending or will be taken, or that a stay of
execution has been granted, the court shall stay enforcement of the foreign judgment until the
appeal is concluded, the time for appeal expires, or the stay of execution expires or is vacated.
Chancery Court for Williamson County to enforce the judgment liens against the real property owned

by Helen Cruzen located in that county and the trial court’s order, referred to previously, is the

subject of this appeal.



               It appears that the position taken in the appellant’s brief is that the court below should

have permitted a relitigation of the Florida actions because the Cruzens were deprived of due process

by the Florida courts in denying them a second continuance, in failing to notify them that a

continuance had been denied, and in failing to give them proper credit.



               Foreign judgments are entitled to full faith and credit. U.S. Const. art. IV, § 1. Once

a foreign judgment has been enrolled, it has the same effect and is subject to the same procedures,

defenses, and proceedings for reopening, vacating, or staying as a judgment of a court of record in

Tennessee and may be enforced or satisfied in a like manner. T.C.A. § 26-6-104(c). Therefore, the

grounds and procedures for vacating or reopening foreign judgments are those contained in Rule

60.02 T.R.C.P. Biogen Distribs., Inc. v. Tanner, 842 S.W.2d 253, 256 (Tenn. App. 1992). Parties

seeking to undermine the validity of a foreign judgment must meet a “stern and heavy” burden to

demonstrate that the foreign judgment should not be enforced in Tennessee. Dement v. Kitts, 777

S.W.2d 33, 36 (Tenn. App. 1989). The factual issues underlying the foreign judgment may not be

the basis of an inquiry to deny the foreign judgment full faith and credit. Benham v. Fisher, 650

S.W.2d 759 (Tenn. App. 1983). We are of the opinion that each of the arguments submitted on

appeal either was or could have properly been presented as a defense to the actions in the Florida

court. With regard to at least one of the Florida judgments, the matter proceeded through the

appellate process in the Florida judicial system. The appellant further contended that the Florida

judgments were obtained by fraudulent means. Fraud is the basis for setting aside a judgment

pursuant to Rule 60.02 T.R.C.P. See also Turley v. Taylor, 65 Tenn. 376 (1873). However, the

argument presented to support the allegation of fraud is that the defendants Cruzen were not the

proper parties in the Florida litigation and, by representing to the court that the Cruzens were the

parties that breached the contracts with Coastcom, the plaintiff in that action perpetrated a fraud

upon the Florida court. We reject this argument because the issue of whether or not the Cruzens

were the proper parties was in fact presented to the Florida courts and the courts rejected that

defense. The full faith and credit clause requires that the common law doctrine of res judicata be
applied in one state to a judgment rendered in another state to the same extent that it applied in the

state of its rendition. Atchley v. Atchley, 585 S.W.2d 614, 616 (Tenn. App. 1978). Res judicata is

an absolute bar to a subsequent suit between the same parties on the same cause of action, and it

concludes such parties not only as to all matters that were actually put at issue and determined, but

also all matters which might have been put at issue and determined. McKinney v. Widner, 746

S.W.2d 699, 705 (Tenn. App. 1987).



               Summary judgment is appropriate in an action seeking to domesticate a foreign

judgment, so long as there are no disputes as to any material fact and the movant is entitled to

judgment as a matter of law. Biogen Distribs., Inc. v. Tanner, 842 S.W.2d 253 (Tenn. App. 1992).

Although this is not an appeal of the action to domesticate the foreign judgments, but rather from

an order allowing a judgment creditor to proceed with enforcement of previously recorded judgment

liens, we see no reason why the same should not be applicable as long as the requirements for

summary judgment provided in Rule 56.04 T.R.C.P. are met. Summary judgment is appropriate

when there is no genuine issue of material fact in dispute and the moving party is entitled to

judgment as a matter of law. The moving party has the initial burden of showing the absence of a

genuine issue of material fact. When this burden is met, the burden shifts to the nonmoving party.

Byrd v. Hall, 847 S.W.2d 208 (Tenn. 1993). There appears to be no genuine issue of material of fact

as to the Cruzens’ liability underlying the Florida judgments or that Coastcom holds judgment liens

and that the foreign judgments remain unsatisfied.



               The judgment of the trial court is affirmed and the costs of this cause are taxed to Mr.

Glen Cruzen. In view of the result reached, we have not addressed the fact that Mr. Cruzen

undertakes to represent Ms. Cruzen in this matter as well as himself, that the real estate sought to

satisfy the judgment was apparently titled only in the name of Ms. Cruzen, and that there is no

indication in the record that Mr. Cruzen is an attorney authorized to represent Ms. Cruzen. A default

judgment was entered against Helen Cruzen in the trial court, and she did not file a notice of appeal.



                                                       ____________________________________
                                                       FARMER, J.
______________________________
CRAWFORD, P.J., W.S. (Concurs)



______________________________
LILLARD, J. (Concurs)