Judge: Daniel S. Murphy, Case: 24STCP01591, Date: 2024-10-25 Tentative Ruling

Case Number: 24STCP01591    Hearing Date: October 25, 2024    Dept: 32

BACKGROUND

            On May 13, 2024, Plaintiff/Judgment Creditor Maury Liwerant initiated this action by filing an application for entry of judgment on sister-state judgment against Defendants/Judgment Debtors David Scott Effress and Huckmuck LLC. The underlying judgment is from Colorado state court.

            On May 16, 2024, judgment was entered in favor of Plaintiff against Defendants in the amount of $169,139.77.

            On August 2, 2024, Plaintiff filed the instant motion for a charging order on Trade Winds Three, LLC.

LEGAL STANDARD

“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.” (Code Civ. Proc., § 708.310.) “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.” (Corp. Code, § 17705.03(a).)

DISCUSSION

            Plaintiff seeks a charging order against Trade Winds Three, LLC, a company that Plaintiff claims is 100% owned by Defendant Effress. For support, Plaintiff relies on her own declaration that Defendant resides at a property in Topanga, California owned by the LLC. (Liwerant Decl. ¶ 4, Ex. B.) Plaintiff further avers that the registered agent of the LLC, George O’Campo, is a business associate of Defendant. (Id., ¶ 5, Ex. C.)

            This evidence is insufficient to show that Defendant owns any interest in the LLC. First, Plaintiff lays no foundation for her knowledge of where Defendant resides or who his associates are. Second, the fact that Plaintiff resides at a property owned by the LLC and is associated with an agent of the LLC shows nothing about Plaintiff’s ownership interest in the LLC.

            Additionally, the motion was served by mail even though Defendant and the LLC have not appeared in the case. Initial service of pleadings and documents must be effectuated by one of the methods prescribed in Code of Civil Procedure section 415.10 et seq. Service by mail is permitted only for subsequent papers after a party has appeared. (See Code Civ. Proc., § 1013.) Thus, service was improper.

Because Plaintiff has failed to prove that Defendant Effress has any ownership interest in Trade Winds Three LLC, and because the motion was improperly served, there is no basis for a charging order against the company.  

CONCLUSION

            Plaintiff’s motion for charging order is DENIED.