Judge: Cherol J. Nellon, Case: 19STCV03711, Date: 2023-08-22 Tentative Ruling

Case Number: 19STCV03711    Hearing Date: August 22, 2023    Dept: 14

Instant Motion

            Plaintiff now moves this court for a charging order creating a lien on Defendant Wegner’s interest in (1) Top Flight Investments, LLC, (2) Palms Blvd Venice Beach, LLC, and (3) Raphaela, LLC, as well as directing those entities to pay any distributions to the Plaintiff.

Governing Statutes

            Code of Civil Procedure § 708.310 provides:

“If a money judgment is rendered against a partner or member but not against the partnership or limited liability company, the judgment debtor's interest in the partnership or limited liability company may be applied toward the satisfaction of the judgment by an order charging the judgment debtor's interest pursuant to Section 15907.03, 16504, or 17705.03 of the Corporations Code.”

Corporations Code § 17705.03 provides in relevant part:

“(a) On application by a judgment creditor of a member or transferee, a court may enter a charging order against the transferable interest of the judgment debtor for the unsatisfied amount of the judgment. A charging order constitutes a lien on a judgment debtor's transferable interest and requires the limited liability company to pay over to the person to which the charging order was issued any distribution that would otherwise be paid to the judgment debtor.”

Decision

            The motion is GRANTED.

            There is an outstanding judgment. That judgment has not been satisfied. A charging order is a legally viable method for Plaintiff to seek recovery and is appropriate under the circumstances.