Abstract of Judgment: Enforceable Upon Revival of Corporate Powers

  In Longview International, Inc. v. Stirling the Court of Appeal for the Sixth District concludes that the recording of an abstract of judgment is a procedural act that is retroactively validated once a suspended corporation’s powers are reinstated.

  An abstract of judgment recorded when a corporation is suspended for failure to pay franchise taxes is not void. At the time of recording, even though a corporation is suspended, the abstract of judgment is capable of being enforced upon the corporation obtaining a revival of its corporate powers. Revival retroactively validates the lien and makes the abstract enforceable.

  The fact that revival occurred after the transfer of property is of no merit. A recorded abstract that complies with all statutory requirements is not void and provides notice to the transferee that the judgment lien may be enforced upon revival of the corporation’s powers.

Want to comment?