Winn v. Brady

Senior lienholders recorded a judgment lien against a judgment debtor’s 50% interest in the Haleakala Highway Property in 2011. The lienholders executed a writ of execution on the property and it was sold at auction in 2015, extinguishing junior liens. The court held that due process required notice reasonably calculated to inform other creditors with interests secured by the property; the statute providing that a recorded judgment shall be a lien upon real property creates a constitutionally protected property interest for judgment creditors who have recorded said judgments; and, in this case, senior holders’ notice by publication of execution sale was insufficient to satisfy junior holders’ due process rights; but personal notice to the parties was required. The Supreme Court would exercise its discretion to hold that its ruling that recorded judgment liens created constitutionally protected property interest would apply prospectively only.