Judgments

RJH of Florida, Inc v Summit Account and Computer Services, Inc, 725 NE2d 972 (Ind Ct App 2000).

Facts: RJH of Florida, Inc. (RJH) had retained Summit Account and Computer Services, Inc. (Summit) to perform collection work. Thereafter, RJH discovered evidence that Summit was engaging in criminal conversion. RJH filed a complaint against Summit for criminal conversion and breach of contract. In December 1996, the trial court entered judgment in favor of RJH and awarded $95,563.90 in damages and $10,000 in attorney fees. Summit appealed the judgment and petitioned for a rehearing and a transfer to the state supreme court. All requests were denied.

In January 1998, RJH filed a petition in the trial court to recover appellate attorney fees and costs incurred while defending Summit's appeal. In August, RJH requested the recovery of additional fees incurred while defending Summit's petition for a rehearing and its petition to transfer. After Summit's petition to transfer was denied but before the hearing on the award of appellate fees was heard, RJH filed a "Release of Judgment" (Release). The document released Summit from the judgment entered by the trial court in December 1996. Thereafter, Summit filed a motion to dismiss RJH's petition for appellate attorney fees arguing that the Release terminated RJH's right to additional fees. The trial court granted Summit's motion and dismissed RJH's petition. RJH appeals.

Holding: Reversed and remanded. Payment and complete satisfaction of a judgment signals the end of a proceeding. However, when a statement of satisfaction applies to only part of a judgment, further proceedings with respect to unsatisfied claims are not barred. The court held that interpretation of the Release should be determined by the language of the document in light of all the surrounding facts and circumstances. RJH's Release is ambiguous. It does not expressly state a partial or full satisfaction of its claims nor does it expressly reserve the right to proceed with the pending appellate attorney fees petition. However, the record shows that RJH diligently pursued appellate attorney fees. This suggests that the Release was not intended to demonstrate full satisfaction but was limited to the initial award only. Absent an expression of full satisfaction, the petition to recover appellate attorney fees is not barred.

EDITOR'S NOTE: Under 735 ILCS 5/12-183(h), when the party in whose favor the judgment was entered files a release of full satisfaction of judgment, a court will vacate the judgment and dismiss the action. 5 ILCS 12-183(h). The party must express full satisfaction in order to bar further proceedings.

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