| Article 10-Replevin and
Foreclosure of Secured Interests
General
Comment
Current
law is found at K.S.A. 61-2401 through 2405. This article was changed
to create a more useful statute and to change many of the legal phrases
to "plain English" terminology. There were few substantive changes
to the statute and the statute was amended to reflect the common practices
observed by judges, clerks of courts, and sheriffs.
1. Replevin
Upon the commencement of
an action, the plaintiff may recover possession of specific personal property
before or after judgment.
(a) Claim for possession
of property. A plaintiff may seek an order to obtain possession of
specific personal property as follows:
(1) Petition. The
plaintiff shall file a petition stating:
(A) Plaintiff is the owner
or the person lawfully entitled to the possession, the specific property,
and the factual basis for the claim,
(B) a description of the
property,
(C) the property is wrongfully
detained by the defendant, or is held by an officer under legal process
who has refused delivery on demand, and
(D) the estimated value
of the property.
(b) Prejudgment possession
of property. A plaintiff may seek an order to obtain immediate possession
of specific personal property, before judgment as follows:
(1) Petition. The
plaintiff shall file a petition signed under penalty of perjury stating:
(A) Plaintiff is the owner
or the person lawfully entitled to the possession, the specific property,
and the factual basis for the claim,
(B) a description of the
property,
(C) the property is wrongfully
detained by the defendant, or is held by an officer under legal process
who has refused delivery on demand, and
(D) the estimated value
of the property.
(c) Hearing; notice, bond.
After filing the petition, the plaintiff may apply to the court for an
order for the delivery of the property prior to judgment on the merits
of the case.
(1) The application to the
court for an order shall be by motion which, unless made during a hearing
or trial, shall be made in writing, shall state with particularity the
grounds therefor, and shall set forth the relief or order sought.
(2) The petition and application
shall be served upon the defendant pursuant to article 3 of this chapter.
(3) After a hearing and
presentation of evidence on plaintiff's motion, and if the judge is satisfied
as to the probable validity of plaintiff's claim and that delivery of the
property to the plaintiff is in the interest of justice and will properly
protect the interests of all the parties, the judge may enter or cause
to be entered an order for the delivery of the property to the plaintiff.
(4) Prior to the issuance
of the order for delivery of the property, the plaintiff shall file a bond
with the clerk of the court.
(d) Bond; contents, insufficiency.
(1) The bond shall be executed
by the plaintiff and one or more sufficient sureties in a sum double the
amount of the fair market value of the property, as determined by the judge,
or such lesser amount as shall be approved by an order of the judge.
(2) The bond shall be to
the effect that plaintiff shall duly prosecute the action, and pay all
costs and damages that may be awarded against the plaintiff, and that if
plaintiff is given possession of the property he or she will return it
to the defendant if it be so adjudged. If the bond shall be found
to be sufficient, the judge shall approve the same and note his or her
approval thereon.
(3) The defendant may challenge
the sufficiency of the bond as provided in subsection (b) of K.S.A. 60-705.
(4) The Court shall
release the bond, if plaintiff abandons the right to take possession of
the property, prior to taking possession of the property.
(e) Replevin; without hearing,
notice.
Notwithstanding the foregoing
provisions of this section, the judge may enter or cause to be entered
the order for delivery of property after an ex parte hearing and without
notice to and the opportunity for a hearing by the defendant, if the judge
is satisfied as to the probable validity of the following additional allegations
to be contained in plaintiff's petition:
(1) Possession of the property
by the plaintiff is directly necessary to secure an important governmental
or general public interest; and
(2) There is a special need
for very prompt action due to the immediate danger that the defendant will
destroy or conceal the property.
(f) Property in custodia
legis. If the property is in the custody of an officer under any legal
process, it shall nevertheless be subject to replevin under this section,
but if the same is in the custody of any officer under any process issued
out of a judicial proceeding, the petition and bond shall be filed in the
same proceeding out of which such process issued.
(g) Order for delivery of
property. The order for the delivery of the property to the plaintiff shall
be delivered to the appropriate officer or person authorized to serve process
of any county in the state in which the property is located. The order
shall state the names of the parties, the description of the property and
the value as set out in plaintiff's petition, or as found by the court
at the hearing on plaintiff's application pursuant to subsection
(c). It shall command the appropriate officer to take immediate possession
of the property and deliver it to the plaintiff and make return of the
order on the day named therein.
(h) Execution of order,
return.
(1) In the execution of
the order the officer may break open any building or enclosure in which
the property is located, if he or she cannot otherwise obtain possession
of the property or entrance to the building on demand.
(2) The appropriate officer
shall execute the order by taking possession of the property described
therein, and serving a copy on the person charged with the order of delivery
in the same manner as for personal or resident service if he or she can
be found in the county.
(3) The return day of the
order of delivery shall be ten (10) days after it is issued, if the order
is executed within the county where the court is situated. In all other
cases, the return day shall be twenty (20) days after the order is issued.
(4) The plaintiff shall
have the right to attend execution of the order. Upon inspection
of the property the plaintiff may abandon their right to prejudgment possession
and shall so advise the appropriate officer and the court.
(I) Perishable goods.
When property shall be actually seized which is likely to perish or to
materially depreciate in value or threatens to decline speedily in value
before the probable termination of the suit, or the keeping of which would
be attended with unreasonable loss or expense, the court may order the
same to be sold on such terms and conditions as the judge may direct, by
the person having charge of the property, and a return of the proceedings
thereon shall be made by the person at a time to be fixed by the judge.
(j) Redelivery, bond.
The defendant, after service of a copy of the delivery order, may apply
to the court for redelivery of the property. The court shall order
return of the property to the defendant when the defendant files a bond
with the clerk of the court, in an amount equal to the plaintiff's bond,
executed by the defendant with one or more sufficient sureties. The
bond shall be to the effect that the defendant will deliver the property
to the plaintiff if so adjudged, and will pay all costs and damages that
may be adjudged against the defendant. If the bond shall be found to be
sufficient, the judge shall approve the same and note his or her approval
thereon. If the defendant is a public officer, board or government
agency, such officer, board or agency, in lieu of giving a redelivery bond,
may retain possession of the property seized by filing with the clerk a
response certifying that the public health, safety or welfare would be
jeopardized or impaired if the plaintiff acquired possession of the property
prior to final judgment, in which case hearing may be had on the issue
of public interest at the instance of any party.
(k) Judgment in action.
(1) In an action to recover the possession of personal property, judgment
for the plaintiff may be for possession or for the recovery of possession,
or the value thereof in case a delivery cannot be had, and for damages
for the detention. If the property has been delivered to the plaintiff
and the defendant claims a return thereof, judgment for the defendant may
be for a return of the property, or the value thereof in case a return
cannot be had, and damages for taking and withholding the same. (2) In
addition to other orders, the court may direct an appropriate officer to
put the party entitled to possession in possession of the property.
Comment
The
replevin section has been changed to distinguish between prejudgment replevins
which require additional Constitutional safeguards, and post judgment replevins
which proceed as normal litigated controversies. The elements required
in the petition are specifically delineated to assist in electronic filing.
The most substantive change is changing the bond amount from "the amount
of plaintiff's claim" to double the fair market value of the property in
dispute. This reduces the bond significantly in the event the property
has little value in comparison to the plaintiff's overall claim.
For example, a lessor seeking return of his leased property may have a
claim for the remainder of the lease term, but the actual fair market value
of the leased property has diminished considerably over time.
The
clerk of the court and sheriff have been relieved of "quasi-judicial" rulings.
A judge determines the sufficiency of bonds and approves bonds, rather
than the clerk. In the case of redelivery bonds, the judge determines
the sufficiency of and approves bonds rather than the sheriff.
2. Foreclosure of security
interest.
A plaintiff may bring an
action to reduce an indebtedness to a money judgment and to foreclose the
security interest in specific personal property given to secure such indebtedness.
The plaintiff, at any time before judgment is rendered, may obtain immediate
possession of the specified property as follows:
(a) Petition. The plaintiff
shall file a petition signed under penalty of perjury stating:
(1) the plaintiff is the
secured creditor of the defendant;
(2) The instrument of indebtedness
or the terms thereof;
(3) the amount of the indebtedness
owed;
(4) the security agreement
or the terms thereof;
(5) a description of the
personal property;
(6) that plaintiff is lawfully
entitled to the foreclosure of the specific personal property;
(7) the estimated value
of each item of personal property; and
(8) the defendant is no
longer entitled to possess the property.
(b) Prejudgment possession;
hearing, notice, bond. After filing the petition, the plaintiff may
apply to the court for an order for the delivery of the property before
judgment.
(1) The application to the
court for an order of delivery shall be by motion which, unless made during
a hearing or trial, shall be made in writing, shall state with particularity
the grounds therefor, and shall set forth the relief or order sought.
(2) The petition and application
shall be served upon the defendant pursuant to article 3 of this chapter.
(3) After a hearing and
presentation of evidence on plaintiff's motion, and if the judge is satisfied
as to the probable validity of plaintiff's claim and that delivery of the
property to the plaintiff is in the interest of justice and will properly
protect the interests of all the parties, the judge may enter or cause
to be entered an order for the delivery of the property to the plaintiff.
(4) Prior to the issuance
of the order for delivery of the property, the plaintiff shall file a bond
with the clerk of the court.
(c) Bond, contents, insufficiency.
(1) The bond shall be executed
by the plaintiff and one or more sufficient sureties in a sum double the
amount of the fair market value of the property, as determined by the judge,
or such lesser amount as shall be approved by an order of the judge.
(2) The bond shall be to
the effect that plaintiff shall duly prosecute the action, and pay all
costs and damages that may be awarded against the plaintiff, and that if
plaintiff is given possession of the property he or she will return it
to the defendant if it be so adjudged. If the bond shall be found to be
sufficient, the judge shall approve the same and note his or her approval
thereon.
(3) The defendant may challenge
the sufficiency of the bond as provided in subsection (b) of K.S.A. 60-705.
(4) The Court shall release
the bond, if plaintiff abandons the right to take possession of the property,
prior to taking possession of the property.
(d) Execution of order,
return.
(1) In the execution of
the order the officer may break open any building or enclosure in which
the property is located, if he or she cannot otherwise obtain possession
of the property or entrance to the building on demand.
(2) The appropriate officer
shall execute the order by taking possession of the property described
therein, and serving a copy on the person charged with the order of delivery
in the same manner as for personal or resident service if he or she can
be found in the county.
(3) The return day of the
order of delivery shall be ten (10) days after it is issued, if the order
is executed within the county where the court is situated. In all other
cases, the return day shall be twenty (20) days after the order is issued.
(4) The plaintiff shall
have the right to attend execution of the order. Upon inspection
of the property the plaintiff may abandon their right to prejudgment possession
and shall so advise the appropriate officer and the court.
(e) Perishable goods. When
property shall be actually seized which is likely to perish or to materially
depreciate in value or threatens to decline speedily in value before the
probable termination of the suit, or the keeping of which would be attended
with unreasonable loss or expense, the court may order the same to be sold
on such terms and conditions as the judge may direct, by the person having
charge of the property, and a return of the proceedings thereon shall be
made by the person at a time to be fixed by the judge.
(f) Redelivery, bond.
The defendant, after service of a copy of the delivery order, may apply
to the court for redelivery of the property. The court shall order
return of the property to the defendant when the defendant files a bond
with the clerk of the court, in an amount equal to the plaintiff's bond,
executed by the defendant with one or more sufficient sureties. The
bond shall be to the effect that the defendant will deliver the property
to the plaintiff if so adjudged, and will pay all costs and damages that
may be adjudged against the defendant. If the bond shall be found to be
sufficient, the judge shall approve the same and note his or her approval
thereon. If the defendant is a public officer, board or government
agency, such officer, board or agency, in lieu of giving a redelivery bond,
may retain possession of the property seized by filing with the clerk a
response certifying that the public health, safety or welfare would be
jeopardized or impaired if the plaintiff acquired possession of the property
prior to final judgment, in which case hearing may be had on the issue
of public interest at the instance of any party.
(g) Possession in third
party. When the officer finds the property in possession of a person other
than a defendant and deems it advisable to leave such person in possession,
the officer shall declare to the person in possession that such person
shall hold such property in such person's possession, subject to the further
order of the court, and shall summon such person as a garnishee by serving
upon such person a copy of the order which directs the officer to take
immediate possession of the property. The court may require of such person
in possession an undertaking with good and sufficient sureties in such
sum as the court deems sufficient. The undertaking shall be to the effect
that such person will deliver the property to the officer at the time and
place fixed for sale, if such be ordered by the court. The officer shall
give such person written notice of the time and place fixed for the sale
by delivery in person or by restricted mail.
(g) Property claimed by
third person. If the officer, before proceeding, may require the possession
of, or be requested by the plaintiff to take possession of, personal property
claimed by any person other than a defendant, the court may require the
plaintiff to give the court an undertaking with good and sufficient sureties
to pay all costs and damages that the officer may sustain by reason of
the execution of such order.
(h) Judgment. Judgment for
the plaintiff shall be for a money judgment and foreclosure of the security
interest, and the plaintiff may proceed to foreclose the security interest
in accordance with the terms of the security agreement covering the property,
as governed by the provisions of the uniform commercial code, unless the
court otherwise directs. If the court directs the plaintiff to proceed
to enforce such plaintiff's judgment other than pursuant to the security
agreement, and if the judgment is not satisfied within 10 days thereafter,
then the clerk shall issue an order of special execution directed to the
appropriate officer to sell the property in accordance with section 3 of
this article, and amendments thereto. If the property is not then in the
possession of the officer, the order shall also direct the person having
possession to deliver such property to the officer. If the property has
been delivered to the officer, and the defendant claims a return thereof,
judgment for the defendant or a return of the property and damages for
the taking and withholding of same.
Comment
A plaintiff
has the right to inspect the property and abandon its claim for replevin
at which time the bond is canceled and the plaintiff and his surety are
relieved of responsibility. There seems to be no good reason to hold
the plaintiff or the surety to the bond if no prejudgment remedy is actually
obtained.
3. Sale of property
to satisfy judgment for foreclosure of security interest.
(a) Any sale conducted under
the provisions of this section shall be subject to the provisions of K.S.A.
60-2406, except that the disposition of proceeds after the satisfaction
of senior security interests or liens shall be made in accordance with
the provisions of section 5 of this article. The officer who shall
be directed to sell the personal property, shall, before said officer proceeds
to sell the same, cause public notice to be given of the time and place
of sale, for at least ten (10) days before the day of sale. The notice
shall be given by publication at least once each week for two (2) consecutive
weeks in any newspaper published in the county, and which is qualified
to carry legal publications, or, in the discretion of the court, by posting
notices in five (5) public places in the county, one of which shall be
on a bulletin board established for public notices in the county courthouse.
Within five (5) days of the date of first publication or posting of notice,
plaintiff shall send by restricted mail a copy of said notice to the defendant
and to those persons known by the plaintiff to have a security interest
in the property. Such notice shall be sent to the last known address of
the person to whom sent and shall be in compliance with K.S.A. 84-1-201
(26). If the personal property cannot be sold at the special execution
sale for want of bidders, the plaintiff may direct the officer to return
the special execution showing that fact or, at his or her option, he or
she may report the same to the judge and obtain an order permitting a second
sale under the same special execution and an extension of the return day
of the special execution if that be necessary.
(b) If the personal property
to be sold shall consist of more than one item of property, the appropriate
officer conducting said sale shall sell only so much of the personally
in his or her custody as is necessary to satisfy the judgment, interest
and costs, and shall return the balance of any property remaining unsold
to the defendant by notifying the defendant of the time and place when
same may be obtained.
(c) Neither the officer
conducting the sale nor any other member of his or her staff may bid at
any such sale.
(d) The provisions of K.S.A.
60-2411 relating to advancement of printer's fees shall apply to this section.
4. Return; confirmation
of sale.
Upon sale of said property,
the appropriate officer shall make a return of said sale to the clerk of
the court, together with an itemization of said officer's expenses of sale.
The court, upon finding the proceedings regular and in conformity with
law, shall confirm the same, and order the officer to make to the purchaser
a certificate of sale. The certificate of sale shall accurately describe
the property sold, name the purchaser and recite the facts of the sale.
If a certificate of title is obtainable for such property under the laws
of this state, the description of the property shall include the year,
make, style and identification number of said property. A certificate of
sale shall vest title to the property in the purchaser.
5. Application of proceeds.
Upon the sale of personal
property by the appropriate officer the clerk of the court shall apply
the proceeds of sale in the following priority:
(a) To the court costs of
the action including the officer's expenses and cost of publication;
(b) in accordance with the
provisions of K.S.A. 60-2406;
(c) in satisfaction of all
judgments rendered in the action against the defendant or the property
in accordance with the priority determined by the court;
(d) any surplus shall be
paid to the defendant, except that if any other security interest holder
has, subsequent to the entering of the judgment of foreclosure, filed with
the clerk of the court a written notification of demand furnishing reasonable
proof of his or her interest, the clerk shall withhold any payment to the
defendant. Such security interest holder must serve the defendant with
notice of his or her demand within ten (10) days after such filing and
furnish proof of such notice to the court.
If the defendant does not,
within ten (10) days, notify the clerk in writing that he or she takes
exception to the demand of said security interest holder, the clerk shall
apply said surplus to the said demand and pay any balance to the defendant.
If the defendant does, within
ten (10) days, notify the clerk in writing that he or she takes exception
to said demand, the clerk shall withhold all surplus in his or her hands
for a period of thirty (30) days. If said security interest holder has
not commenced a separate action to recover his or her claim and garnished
the clerk within said time, the clerk shall pay said surplus to the defendant.
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