Leisnoi, Inc. v. Merdes & Merdes, Professional Corp.

[CIVIL PROCEDURE

In Leisnoi, Inc. v. Merdes & Merdes, Professional Corp.,[1] the supreme court held that the payment of an adverse judgment does not necessarily waive the debtor’s right to appeal and potentially recover the money paid.[2] In 1995, Merdes & Merdes (“Merdes”) secured a judgment from an arbitration panel against Leisnoi.[3] In 2002, Leisnoi defaulted on their payment of the judgment.[4] In 2010, the lower court issued a writ of execution and Leisnoi paid the judgment’s balance.[5] Leisnoi subsequently appealed the lower court’s order.[6] On appeal, Merdes argued Leisnoi waived its right to appeal by voluntarily paying the balance of the 1995 judgment.[7] The supreme court reasoned that deeming the payment of an adverse judgment involuntary, as a matter of law, would protect the debtor’s right to an appeal, while also protecting the creditor’s interest in receiving prompt payment.[8] Thus, the supreme court held that payment of a judgment, in the absence of a settlement, does not waive the debtor’s right to appeal.[9]


[1] 307 P.3d 879 (Alaska 2013).

[2] Id. at 886.

[3] Id. at 883.

[4] Id.

[5] Id. at 884.

[6] Id.

[7] Id. at 885.

[8] Id. at 886.

[9] Id.

Leisnoi, Inc. v. Merdes & Merdes, Professional Corp.

[CIVIL PROCEDURE

In Leisnoi, Inc. v. Merdes & Merdes, Professional Corp.,[1] the supreme court held that the payment of an adverse judgment does not necessarily waive the debtor’s right to appeal and potentially recover the money paid.[2] In 1995, Merdes & Merdes (“Merdes”) secured a judgment from an arbitration panel against Leisnoi.[3] In 2002, Leisnoi defaulted on their payment of the judgment.[4] In 2010, the lower court issued a writ of execution and Leisnoi paid the judgment’s balance.[5] Leisnoi subsequently appealed the lower court’s order.[6] On appeal, Merdes argued Leisnoi waived its right to appeal by voluntarily paying the balance of the 1995 judgment.[7] The supreme court reasoned that deeming the payment of an adverse judgment involuntary, as a matter of law, would protect the debtor’s right to an appeal, while also protecting the creditor’s interest in receiving prompt payment.[8] Thus, the supreme court held that payment of a judgment, in the absence of a settlement, does not waive the debtor’s right to appeal.[9]


[1] 307 P.3d 879 (Alaska 2013).

[2] Id. at 886.

[3] Id. at 883.

[4] Id.

[5] Id. at 884.

[6] Id.

[7] Id. at 885.

[8] Id. at 886.

[9] Id.