¶ 10 The district court, however, again ruled in the McClures' favor. Concluding that Chase's Arizona charging orders were unenforceable in Colorado until they were domesticated, the court ruled that the McClures' charging orders "were the first enforceable charging orders served on the [LLCs] and, hence, they have priority over [Chase's] Arizona charging orders."¶ 11 Chase appealed, and in McClure v. JP Morgan Chase Bank NA , 2015 COA 117, ¶ 3, ––– P.3d ––––, a unanimous division of the court of appeals affirmed. As pertinent here, the division held that as a matter of first impression in Colorado, the priority of charging orders issued against an out-of-state debtor's membership interests in Colorado LLCs is based on first-in-time service of charging orders that are enforceable in Colorado.
¶ 10 The district court, however, again ruled in the McClures' favor. Concluding that Chase's Arizona charging orders were unenforceable in Colorado until they were domesticated, the court ruled that the McClures' charging orders "were the first enforceable charging orders served on the [LLCs] and, hence, they have priority over [Chase's] Arizona charging orders."¶ 11 Chase appealed, and in McClure v. JP Morgan Chase Bank NA , 2015 COA 117, ¶ 3, ––– P.3d ––––, a unanimous division of the court of appeals affirmed. As pertinent here, the division held that as a matter of first impression in Colorado, the priority of charging orders issued against an out-of-state debtor's membership interests in Colorado LLCs is based on first-in-time service of charging orders that are enforceable in Colorado.
Because a charging order "constitutes a lien on the judgment debtor's limited liability company interest or assignee rights," Young v. Levy, 140 So.3d 1109, 1111 (Fla. 4th DCA 2014), issuance of an enforceable charging order requires domestication of the foreign judgment. See Michael v. Valley Trucking Co., Inc., 832 So.2d 213, 215 (Fla. 4th DCA 2002) (explaining that, prior to Florida's adoption of the Florida Enforcement of Foreign Judgments Act ("FEFJA"), "creditors with foreign judgments had to file an action to domesticate the judgment in Florida and then record the judgment as a Florida judgment in order to create a valid lien").A charging order issued by a domestic court without foreign judgment domestication would not be perfected upon the issuance of the charging order.See, e.g., McClure v. JP Morgan Chase Bank NA, 395 P.3d 1123 (Colo. App. 2015) (determining that a domesticated judgment, although later in time, had priority over a first-in-time judgment that had not been domesticated). As a result, we must review the timing of the parties' domestication and charging order issuance to determine priority.
As a general rule, “[t]he Full Faith and Credit Clause protects the final judgments of one state from collateral attack in another state.” McClure v. JP Morgan Chase Bank NA, 2015 COA 117, ¶ 26. But, in Thomas v. Wash. Gas Light Co., 448 U.S. 261, 286, 100 S.Ct. 2647, 65 L.Ed.2d 757 (1980), the Supreme Court held that the Full Faith and Credit Clause was not violated if two states granted a worker successive compensation awards.