Colleen Dolan, Judge.
Adam R. Mees ("Appellant") appeals the motion court's denial of his Motion for Satisfaction of Judgment and Motion to Quash [an Execution of] Garnishment.
On May 4, 2005, a default judgment was entered against Appellant in the amount of $6,812.15. J&M Securities ("J&M") brought the action as an assignee after purchasing the debt from Plaza Square Apartments.
On July 5, 2016, J&M filed an Execution Application and Order, 16-EXEC-2468, with a judgment balance of $6,812.15 and post-judgment interest in the amount of $7,715.86 for a total judgment of $14,672.01.
As an initial matter, there must be a final judgment for an appellate court to obtain jurisdiction. Sanford v. CenturyTel of Mo., LLC, 490 S.W.3d 717, 719 (Mo. banc 2016).
In reviewing a motion court's denial of a motion to quash an execution of a garnishment we will affirm the court's decision "unless it is unsupported by substantial evidence, it is against the weight of the evidence, or it erroneously declares or applies the law." Noble v. Noble, 456 S.W.3d 120, 128 (Mo. App. W.D. 2015).
Under § 516.350.1, "judgments are conclusively presumed paid ten years after
In the present case, Appellant alleges that no payment was ever made on the judgment prior to the ten-year expiration; instead, he contends a credit was applied to his debt unilaterally by his creditor, J&M. To support his contention, Appellant provided the court with a sworn affidavit stating he had never made a payment of any kind on the judgment, he never authorized another to make a payment, and he had no knowledge that any payment or other credit had been made. He further stated that he had not had any contact with J&M since the date the default judgment was entered on May 5, 2005. In response, J&M alleged a payment was made, sufficient to extend the judgment under § 516.350.1, because J&M filed an Acknowledgment of Credit Toward Judgment on the Record and submitted an account ledger demonstrating a $50.00 credit was applied to Appellant's debt.
"`Payment' has been defined in Missouri law as the delivery of money or other valuable thing in the discharge of an obligation or for the purpose of extinguishing a debt." Tiller v. 166 Auto Auction, 65 S.W.3d 1, 4 (Mo. App. S.D. 2001) (overruled on other grounds by Hampton v. Big Boy Steel Erection, 121 S.W.3d 220, 223 (Mo. banc 1993)). "Payment requires action of both the debtor and creditor." Parnell v. Sherman, 899 S.W.2d 900, 903 (Mo. App. S.D. 1995). More specifically, "[p]ayment requires delivery by the debtor and acceptance by the creditor, both with a common purpose." Id. In Crockett v. Polen, the Missouri Supreme Court found that payments in the form of garnished wages, entered on the record prior to the tenth anniversary of the judgment, were sufficient to revive the judgment under § 516.350. 225 S.W.3d 419, 419-21 (Mo. banc 2007). The Court specifically found that payments did not need to be voluntary in order to toll the statutory deadline. Id. at 421.
Although the payment need not be voluntary, the burden falls on the party seeking to stop the running of the statute to establish that a "payment" was made. Eubank v. Eubank, 29 S.W.2d 212, 214
Id.
The Supreme Court of Missouri noted that the Western District in Eubank "held that those fictional payments, entered after expiration and without the debtor's knowledge or consent, did not serve to revive the judgment." Crockett, 225 S.W.3d at 420. The Supreme Court of Missouri has also held that a credit, applied to a judgment debt by a creditor or his agent, does not act as a payment sufficient to toll the statute of limitations for a judgment debt. Regan v. Williams, 185 Mo. 620, 84 S.W. 959, 961 (1905); see also Brown v. Brown, 5 S.W.2d 644, 645 (Mo. App. E.D. 1928). A credit applied to a judgment debt by a creditor is not a payment sufficient to revive a debt under § 516.350.1 because there is no delivery or transfer of funds from the debtor, or another acting on his behalf, to the creditor. If such a practice were sufficient to toll the statute then there would be no need for any creditor to file a motion to revive the judgment under Rule 74.09.
The record in the present case does not demonstrate who made the payment or other credit J&M relied on to toll the judgment under § 516.350.1. Appellant presented evidence that he did not make a payment and did not authorize another to do so. The burden of proof lay with J&M as the party seeking to stop the running of the statutory clock to prove that a payment was made. It failed to present any evidence to rebut Appellant's contention that J&M applied a credit unilaterally to Appellant's debt, which would not constitute a "payment."
Prior to submission of this case on appeal, Appellant filed a motion for attorneys' fees. Appellant contends he is entitled to appellate attorneys' fees under § 511.620. Appellant alternatively argues that the conduct in this case is sufficient to support an award of attorneys' fees as a sanction.
Section 511.620 states:
Under § 516.350.1 "Every judgment, order or decree of any court of record of the United States, or of this or any other state... shall be presumed to be paid and satisfied after the expiration of ten years from the date of the original rendition thereof, or ... after ten years from ... revival [or] ... payment." In the present case, J&M argued a payment sufficient to toll the statutory deadline of § 516.350 had been made and thus the judgment was unsatisfied. The motion court agreed by denying Appellant's motions. Therefore, there was no determination that the judgment had been satisfied prior to this appeal and § 511.620 is inapplicable.
We also decline to adopt Appellant's alternative argument that J&M acted in bad faith in defending its position, on appeal, that a payment had been made and is thus open to sanctions in the form of attorneys' fees. "A court may assess attorney's fees when a party has acted in bad faith, vexatiously, wantonly, or for oppressive reasons." McLean v. First Horizon Home Loan, Corp., 369 S.W.3d 794, 801 (Mo. App. W.D. 2012) (quoting Chambers v. NASCO, Inc., 501 U.S. 32, 111 S.Ct. 2123, 2132, 115 L.Ed.2d 27 (1991)). Courts must proceed cautiously in exercising this power. Id. In the present case, there is no evidence of vexatious or wanton conduct or bad faith in the record sufficient to trigger an award of appellate attorneys' fees as a sanction. Appellant's motion for attorneys' fees on appeal is denied.
For the foregoing reasons the judgment of the motion court is reversed and Appellant's motion for attorneys' fees is denied.
Sherri B. Sullivan, P.J., concurs.
Roy L. Richter, J., concurs.