NATURE OF PROCEEDINGS: Hearing on Plaintiff’s Motion for Assignment Order and for Order Restraining Judgment Debtor

 

Plaintiff’s Motion for Assignment Order and for Order Restraining Judgment Debtor is granted.

 

BACKGROUND

Plaintiff Matthew Shelley filed this action against Juan J. Moreno and Lumen Property Management, LLC (Lumen) (collectively “Defendants”), alleging breach of a loan agreement.

On May 23, 2024, the Court entered default judgment for Plaintiff against Defendants.

On March 5, 2025, Plaintiff filed a Motion for Assignment Order and for Order Restraining Judgment. Defendants did not file an opposition.

 

LEGAL STANDARD

I. Assignment Order

Code of Civil Procedure section 708.510 authorizes a court to issue an order directing the judgment debtor to assign to a judgment creditor all or part of a right to payment due or to become due, including rents, commissions, royalties, payments due, accounts receivable, general intangibles, judgments, and instruments. It also authorizes the court to order the outright assignment of the right to payment to the judgment creditor. Although the court may consider all relevant factors, the sole constraint placed on the court is that the right to payment be assigned only to the extent necessary to satisfy the creditor’s money judgment. Code Civ. Proc.§ 708.510, subd. (c), (d), (e), and (f).

Relevant factors include “(1) The reasonable requirements of a judgment debtor who is a natural person and of persons supported in whole or in part by the judgment debtor. [¶] (2) Payments the judgment debtor is required to make or that are deducted in satisfaction of other judgments and wage assignments, including earnings assignment orders for support. [¶] (3) The amount remaining due on the money judgment. [¶] (4) The amount being or to be received in satisfaction of the right to payment that may be assigned.” Code Civ. Proc. § 708.510, subd. (c)

 

II. Order Restraining Judgment Debtor

Code of Civil Procedure section 708.520 provides that “[w]hen an application is made pursuant to Section 708.510 or thereafter, the judgment creditor may apply to the court for an order restraining the judgment debtor from assigning or otherwise disposing of the right to payment that is sought to be assigned.” Code Civ. Proc. § 708.520, subd. (a). “The court may issue an order pursuant to this section upon a showing of need for the order.” Id. § 708.520, subd. (b).

 

ANALYSIS

I. Assignment Order

Plaintiff seeks an order assigning the interest of Lumen to the Deed of Trust and Assignment of Rents recorded on January 22, 2021, and all rights to payment thereunder, to Plaintiff to the extent necessary to pay the judgment creditor’s judgment in full, including accrued interest through the date of payment.

Here, the judgment debtor, Lumen, is not a natural person, and the Court is not aware of any persons supported in whole or in part by Lumen. Likewise, the Court is unaware of any payments Lumen must make or deduct to satisfy other judgments and wage assignments. Accordingly, the Court grants Plaintiff’s motion assigning Lumen’s interest in the Deed of Trust and Assignment of Rents recorded on January 22, 2021, and all rights to payments thereunder until the judgment, including interest, is satisfied.

 

II. Order Restraining Judgment Debtor

Plaintiff argues that there is a need to restrain the Lumen from encumbering, assigning, disposing of, or spending the rents and payments on the instrument, because Lumen previously breached its agreement “not to sell or transfer ownership of the property listed in th[e] collateral agreement until their debt to [Plaintiff] has been fully resolved.” Hahn Decl. ¶ 8.

The Court concludes that Plaintiff has demonstrated necessity and grants Plaintiff’s motion for an order restraining Lumen from encumbering, assigning, disposing of, or spending the rents and payments.

 

CONCLUSION

Plaintiff’s Motion for Assignment Order and for Order Restraining Judgment Debtor is granted.