Goldberg Simpson notches win for client in real estate law case involving foreclosure sale

Today the Kentucky Court of Appeals rendered its opinion in Kentucky Housing Corp. v. Coots (no. 2012-CA-001382-MR, designated “Not To Be Published”), which reversed the judgment of the Johnson Circuit Court. Goldberg Simpson attorneys Stephen R. Solomon and Brant W. Sloan represented the successful appellant, KHC.

The Coots case involved a foreclosure sale in Johnson County. The Goldberg Simpson litigation team had obtained a judgment and order of sale from the circuit court, which had required that the Master Commissioner sell the land only if KHC’s agent was present at the sale. Four months later, despite the clear language of the court’s order, the Master Commissioner sold the property before KHC’s agent could arrive at the sale. Despite several efforts to have the circuit court enforce the terms of its prior judgment, the court confirmed the sale. On appeal, Solomon and Sloan argued on behalf of KHC that: (1) the Master Commissioner had no discretion to ignore the clear terms of the circuit court’s judgment and order of sale, and (2) the circuit court lost jurisdiction to modify the terms of its judgment 10 days after it had been entered, meaning the trial court had erred by approving the sale.

The Court of Appeals agreed with KHC’s position on all counts. It held that, as a creature of statute, the Master Commissioner was bound to follow the terms of the circuit court’s judgment and order of sale. It also agrees with Solomon and Sloan that the circuit court had erred by confirming the sale, despite the clear language of its prior judgment to the contrary. The circuit court’s orders were reversed, and the case has been remanded to the circuit court for proceedings consistent with the Court of Appeals opinion. Congratulations to Steve Solomon and to Brant Sloan for a job well done on behalf of Goldberg Simpson’s client.