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Lacina v. Maxwell
Citations: 501 N.W.2d 531; 1993 Iowa Sup. LEXIS 135; 1993 WL 209084Docket: 92-914
Court: Supreme Court of Iowa; June 16, 1993; Iowa; State Supreme Court
In Lacina v. Maxwell, the Supreme Court of Iowa addressed an appeal concerning a deficiency judgment resulting from the foreclosure of a real estate contract. The appellant, Lyle Zimmerman Construction Company, sought to prevent further collection efforts, arguing that Iowa Code section 615.1 (1991) imposed a two-year statute of limitations on such judgments. The district court ruled that this statute did not apply to foreclosures of real estate contracts, a decision that was affirmed by the Supreme Court. The case began in February 1981 when Jeffrey and Brenda Maxwell, along with Zimmerman Construction, purchased property from Donald and Marilyn Lacina under a real estate contract. After failing to make payments in January 1987, the Lacinas filed for foreclosure in April 1987. The court issued a foreclosure decree in December 1988, resulting in a deficiency judgment after the property's sale for $265,000, significantly less than the outstanding amount of $468,000. Subsequent legal actions included the Lacinas seeking to pierce the corporate veil of Zimmerman Construction and pursue the deficiency judgment, which was momentarily halted pending the receivership resolution. Following an appeal by Zimmerman Construction after a December 1990 ruling on receivership matters, the Iowa Court of Appeals upheld the district court's decisions. In April 1992, Zimmerman Construction's application for a permanent injunction against the enforcement of the deficiency judgment was denied by the district court, which held that section 615.1 did not encompass foreclosures of real estate contracts. This ruling was appealed, with the Supreme Court reviewing the matter under its equitable jurisdiction, confirming the district court's interpretation of the statute. Iowa Code section 615.1 specifies that judgments for the foreclosure of real estate mortgages or deeds of trust cannot be enforced after two years from their entry, with no mention of real estate contracts. Zimmerman Construction contends that this two-year limitation should apply to real estate contracts as well, arguing that Iowa Code chapter 654, which governs foreclosure procedures, should be considered alongside section 615.1. Chapter 654 indicates that a vendee in a real estate contract is treated similarly to a mortgagor for foreclosure purposes. However, the court disagrees, stating that the express mention of mortgages and deeds of trust in section 615.1 implies the exclusion of real estate contracts. The court emphasizes that it cannot alter the terms of a statute and must adhere to the legislature's wording. Despite arguments that the legislature intended equal treatment in foreclosure rights, the court finds section 615.1 to be clear and unambiguous, ultimately affirming that its protections do not extend to real estate contract debtors.