Judge: Bruce G. Iwasaki, Case: BC587571, Date: 2023-08-22 Tentative Ruling

Case Number: BC587571    Hearing Date: November 20, 2023    Dept: 58

Judge Bruce Iwasaki

Department 58

Hearing Date:              November 20, 2023 (c/t from August 22, 2023 and October 12, 2023)           

Case Name:                 Lee v. Stevenson

Case No.:                    BC587571                    

Motion:                       Motion to Supplement Order of Assignment 

Moving Party:             Plaintiff Chuon Guen Lee

Responding Party:      None                          

Tentative Ruling:       The Motion to Supplement Order of Assignment is granted.

BACKGROUND AND PROCEDURAL HISTORY     

The Complaint alleges that Plaintiff Chuon Guen Lee and Defendants Michael Stevenson (Stevenson) and Tarell Meeks (Meeks) formed a company called Kings to manufacture and market a clothing line bearing the logo of Kings – a logo associated with hip-hop artist Tyga. Plaintiff Lee invested her money into this joint-venture company through her company, Aphection, Inc, upon the promise that Defendants would promote the clothing lines and do their utmost to bring in purchase orders from retailer, Tilly’s. However, once the business became successful, Defendants formed their own competing company, Egypt Last Kings Clothing LLC, which engaged in direct competition with Plaintiff’s interests. Plaintiff alleged damages in the amount of $1,600,000.

            On March 22, 2016, the Court entered default judgment against Defendants Meeks, Stevenson, and Egypt Last Kings Clothing LLC in the amount of $1,926,604.36.

            On April 20, 2018, Plaintiff sought an assignment of royalties due to Judgment Debtor Michael Stevenson aka Tyga’s record labels, publishers and distributors, including Broadcast Music, Inc. (BMI) and the American Society of Composers and Publishers (ASCAP) to satisfy the Judgment. On June 26, 2018, the Court granted the motion for assignment and issued an assignment order as to payments paid by BMI to Judgment Debtors. After an ex parte application from Plaintiff, the Court also granted an assignment order for payment received from the streaming service, Spotify, Inc.

            On January 19, 2023, Defendant/Judgment Debtor Michael Stevenson sought an order directing Plaintiff to disclose the total proceeds and amounts that Plaintiff/Judgment Creditor has collected to date on the default money judgment entered in favor of Judgment Creditors as against Judgment Debtor Stevenson, including an accounting of all monies collected to date in satisfaction of the judgment.

            On April 19, 2023, Plaintiff/Judgment Creditor filed a Partial Acknowledgment of Satisfaction of Judgment in the amount of $1,798,543.05.[1]

            On June 19, 2023, Plaintiff/Judgment Creditor moved for an order supplementing the June 26, 2018 Order to reflect sums continuing to be owed to Judgment Creditor following partial satisfaction of judgment, identifying $1,460,898.43 in unpaid post-judgment interest and principal. No opposition was filed. No proof of service was filed as to Judgment Debtor.

            At the hearing on August 22, 2023, the Court raised the issue of the lack of a proof of service and whether Judgment Creditor was required to provide notice of this motion to Judgment Debtor. The Court continued the matter to allow Judgment Creditor the opportunity to brief this issue. However, rather than address this issue, Judgment Creditor filed a proof of service, purporting to serve “Dina Lapot” at “Lapolt Law, P.C., 9000 Sunset Blvd., Suite 800, West Hollywood, CA 90069” with the Motion to Supplement Order of Assignment, the Notice of Continuance, and Memorandum of Costs (Filed on October 2, 2023).

            On October 12, 2023, the Court held another hearing on this matter. The Court again raised concerns over service and questioned whether service on “Dina Lapot” was proper. Also, at the hearing, Counsel Nathan Meyer represented to the Court that he had been given authority to represent Defendant. Counsel Nathan Meyer was then ordered to file a substitution of attorney or a document as to his status on representing Defendant. The Court continued the motion to allow time for Defendant to file an opposition.

            On October 27, 2023, Counsel Nathan Meyer filed a Noice of Appearance on behalf of Defendant. No opposition was filed. Plaintiff filed a Notice of Non-Opposition and a Reply.

            The motion is granted.  

            Plaintiff/Judgment Creditor’s request for judicial notice of Exhibits A-C is granted. (Evid. Code § 452, subd. (h).)

DISCUSSION

Plaintiff/Judgment Creditor seeks amendment of the June 26, 2018 Order, pursuant to Paragraph 2 of this Order, to specify the remainder owed and payable through the assignment of royalties collected by Broadcast Music Inc. (BMI).

            Under Code of Civil Procedure section 685.010 (calculation of post-judgment interest) and Code of Civil Procedure section 708.520 (authorizing a court to restrain Judgment Debtor from further assigning royalties or otherwise disposing the right to payment), the Court has the authority to issue an order approving assignment of post-judgment interest as accrued on any unpaid judgment.

Plaintiff/Judgment Creditor submits a detailed calculation of payments received to date from BMI and the calculation of the continuing interest of 10% per year on the unpaid judgment amounts. (Shining Decl., ¶ 15.) Based on these calculations, Plaintiff/Judgment Creditor asserts that she is owed a further $1,460,898.43 as of June 13, 2023. (Shining Decl., ¶¶ 11, 21, Ex. E.)

Plaintiff/Judgment Creditor’s motion is well-taken.

Further, Plaintiff submits a proof of service indicating that Counsel Nathan Meyer was served, as well as Defendant at both a Calabasas, California address and Miami, Florida address.

The Motion is granted.