Judge: David Sotelo, Case: 19STCV06318, Date: 2022-10-20 Tentative Ruling



Case Number: 19STCV06318    Hearing Date: October 20, 2022    Dept: 40

MOVING PARTY:               Specially Appearing Non-Party Bo Jin (Motion to Quash Order for Appearance and Examination; Motion to Quash Subpoena); Specially Appearing Non-Party Fang Fang (Motion to Quash Subpoena Duces Tecum).

 

Three motions are before the Court:

 

Specially Appearing Non-Party Bo Jin’s Motion to Quash Order for Appearance and Examination Issued June 3, 2022 in favor of L.J. Zhu—Assignee of Record for Judgment Creditor in this action, Home Paradises LLC—as against Bo Jin in his capacity of CEO for JBFF International, Inc.—i.e., the Judgment Debtor in this action by way of Default Judgment entered against it on January 15, 2020 in the amount of $54,064.25, with JBFF taking its name from the combination of the initials of “Jin, Bo” and “Fang, Fang.”

 

Specially Appearing Non-Party Bo Jin’s Motion to Quash Subpoena served on Jin as CEO of JBFF International by Assignee of Record L.J. Zhu and issued by this Court on June 6, 2022; and

 

Specially Appearing Non-Party Fang Fang’s Motion to Quash Subpoena Duces Tecum served on her in her individual capacity by Assignee of Record L.J. Zhu and issued by this Court on June 6, 2022.

 

The motions are made in response to Orders by this Court granting requests by Assignee of Record L.J. Zhu for (1) a Subpoena for records and testimony from Bo Jin as CEO of JBFF International, (2) an Order for Appearance and Examination of Bo Jin as CEO of JBFF International at a hearing originally scheduled for July 28, 2022, but now calendared for October 20, 2022, and (3) a Subpoena Duces Tecum for records and testimony from Fang Fang—Bo Jin’s wife—in her individual capacity, NOT as any kind of officer of JBFF International.

 

All three requests seek documents and testimony to assist L.J. Zhu in the collection of the outstanding judgment in this action.

 

After review, the Court DENIES Bo Jin’s Motion to Quash [containing two Quash motions therein] and GRANTS Fang Fang’s Motion to Quash as follows:

 

(1) DENIES Bo Jin’s Motion to Quash Order for Appearance and Examination because, contrary to Jin’s arguments, the Order is not defective in naming JBFF International as Judgment Debtor through its CEO, Bo Jin;

 

(2) DENIES Bo Jin’s Motion to Quash Subpoena because its sole supporting argument—that the Subpoena served on him by L.J. Zhu fails as a result of the Motion to Quash the Order for Appearance and Examination prevailing—is unavailing where this Court has denied the Motion to Quash the Order for Appearance and Examination; and

 

(3) GRANTS Fang Fang’s Motion to Quash Subpoena Duces Tecum because, (1) while the Code of Civil Procedure permits the examination of debtor’s spouses, Assignee of Record L.J. Zhou has not presented sufficient briefing or evidence to convince this Court that Fang has control of documents or personal knowledge as to the collectability of judgment against JBFF International, and (2) Zhu fails to show how Fang’s community property is tied assets transferred from JBFF International to avoid collection of judgment in this action.

 

Motion to Quash, Order for Appearance and Examination, Bo Jin: DENIED

 

Legal Standard: Upon motion “reasonably made” by the judgment debtor or third party, or upon the court’s own motion after giving counsel notice and an opportunity to be heard, the court may quash the subpoena entirely, modify it or direct compliance “upon those terms or conditions as the court shall declare, including protective orders.” (Code Civ. Proc., § 1987.1; see Lee v. Swansboro Country Property Owners Ass’n (2007) 151 Cal.App.4th 575, 582-83 [motion to quash subpoena filed 7 days before debtor’s examination that did not raise new issues and gave judgment creditor ample time to respond was timely and ‘reasonably made’ under § 1987.1].)

 

Analysis: Non-Party Bo Jin makes this July 22, 2022 Motion to Quash in part seeking an Order quashing the June 3, 2022 Order for Appearance and Examination made on him as CEO of JBFF International, i.e., the judgment debtor in this action.

 

The Motion is based on the grounds that the Order for Appearance and Examination is defective because the Order “failed to name correct debtor to attend the hearing” insofar as the Order commands “Bo Jin, CEO of JBFF International Inc.” to make an appearance as “the judgment debtor” in this action where Bo Jin himself is not personally a judgment debtor thereto. (Jin Mot., 3:12-22.)

 

This position is disingenuous. An Order for Appearance and Examination can be made on the judgment debtor or on a third party who either has possession or control of property belonging to the judgment debtor or the defendant, or on a third-party person who owes the judgment debtor or defendant more than $250. (See Civil form AT-138/EJ-125, Application and Order for Appearance and Examination, ¶ 6.) Here, the Order was not made against Bo Jin individually, but rather as CEO of JBFF International, and where JBFF itself, being a noncorporeal being, must accept and manage production demands through its representatives.

 

Further, if an order for examination designates a specific individual to be examined, that person must appear, and such a person may be accompanied by one or more officers, directors, managing agents or other persons familiar with the entity’s property and debts. (Code Civ. Proc., § 708.150, subd. (d).) Bo Jin has been ordered to appear for examination as CEO of JBFF International. He must comply with such Order.

 

Motion to Quash, Subpoena Duces Tecum, Bo Jin: DENIED.

 

Legal Standard: A motion to quash a deposition subpoena or deposition notice is used to strike, modify, or impose conditions on a subpoena or notice that is procedurally or substantively defective. (See Code Civ. Proc., §§ 1987.1, subd. (a), 2025.410, subd. (c); see, e.g., Catholic Mut. Relief Soc’y v. Superior Court (2007) 42 Cal.4th 358, 365 [motion based on ground that subpoenas sought information outside scope of discovery]; John B. v. Superior Court (2006) 38 Cal.4th 1177, 1186 [motion based in part on ground that subpoenas violated right of privacy]; McClatchy Newspapers v. Superior Court (1945) 26 Cal.2d 386, 391 [motion based on ground that subpoenas were unreasonable and oppressive]; Far W. S&L Assn. v. McLaughlin (1988) 201 Cal.App.3d 67, 71 [motion based on ground that subpoena was not properly served]; City of Los Angeles v. Superior Court (2003) 111 Cal.App.4th 883, 888 [procedural remedy for a defective subpoena is generally a motion to quash under § 1987.1].) A motion to quash a subpoena for the production of documents may be made by:

 

(1) Any party to the action (Code Civ. Proc., 1987.1, subd. (b)(1));

 

(2) The subpoenaed witness (e.g., a custodian of another person’s personal records) (Code Civ. Proc., § 1987.1, subd. (b)(2); Monarch Healthcare v. Superior Court (2000) 78 Cal.App.4th 1282, 1287-88);

 

(3) A person (party or nonparty) whose consumer, governmental, or employment information or records have been subpoenaed (see Code Civ. Proc., § 1985.3, subd. (g) [party consumer], 1985.4 [state or local-agency employee or any other natural person], 1985.6, subd. (f)(1) [employee], 1987.1, subd. (b)(3) [consumer], 1987.1, subd. (b)(4) [employee]; see also Code Civ. Proc., §§ 1985.3, subd. (g), ¶ 2, 1985.6, subd. (f)(2) [nonparty consumer can make written objections instead of motion to quash]);

 

(4) A person whose “personally identifying information” within the meaning of Civ. Code § 1798.79.8, subd, (b), subpoenaed in connection with an action involving that person’s exercise of free-speech rights; and

 

(5) The Court, on its own motion, after giving the parties notice and the opportunity to be heard (Code Civ. Proc., § 1987.1, subd. (a).)

 

Analysis: Non-Party Bo Jin makes this July 22, 2022 Motion to Quash in part seeking an Order quashing the Subpoena served on him by Assignee of Record L.J. Zhu and requesting production of documents and testimony related to the financial condition of judgment debtor JBFF International. (See Jin Mot., 3:23-4:16; see also Jin Mot., Ex. A [including, among other things, copy of Subpoena served on Bo Jin as CEO of JBFF International].)

 

Bo Jin is the subpoenaed witness and thus entitled to make this Motion to Quash. (See Code Civ. Proc., § 1987.1, subd. (b)(2); see also Jin Mot., Ex. A [including, among other things, copy of Subpoena served on Bo Jin as CEO of JBFF International].)

 

Moving to the merits, Jin’s Motion is entirely premised on the faulty argument that this “Court should quash ZHU’s defective subpoena because the Subpoena was issued relying on a defective ORAP,” i.e., Order for Appearance and Examination, for which reason the subpoena “is also defective.” (Mot., 4:14-16.)

 

As the Court has found that the Order for Appearance and Examination was properly made on Bo Jin as CEO of JBFF International, this domino effect argument by Bo Jin also necessarily fails.

 

Motion to Quash, Subpoena Duces Tecum, Fang Fang: GRANTED

 

Analysis: Non-Party Fang Fang makes her July 21, 2022 Motion to Quash seeking an Order quashing the Subpoena Duces Tecum served on Fang Fang by Assignee of Record L.J. Zhu and requesting production of documents and testimony related to the financial condition of judgment debtor JBFF International. (See Fang Mot., 3:13-7:4; see also Fang Mot., Ex. A [including, among other things, copy of Subpoena Duces Tecum served on Fang Fang individually].)

 

Fang is the subpoenaed witness and thus entitled to make this Motion to Quash. (See Code Civ. Proc., § 1987.1, subd. (b)(2); see also Fang Mot., Ex. A [including, among other things, copy of Subpoena Duces Tecum served on Fang Fang individually].)

 

Moving to the merits of the Motion, Fang presents three arguments in favor of quashing the Subpoena Duces Tecum served on her: the subpoena is vague, ambiguous and burdensome because (1) a review of the Subpoena informs Fang that she does not possession of any documents listed in the attachments to the Subpoena, (2) Fang does not believe the subpoena will lead to relevant or admissible evidence given her lack of personal knowledge or custody of documents responsive to the Subpoena, and (3) the Subpoena and supporting affidavit are vague, ambiguous and burdensome and do not support compelling testimony or document production from Fang. (Mot., 3:13-5:8, 5:9-24, 5:25-7:4.)

 

A third person (e.g., a nondebtor spouse) may be ordered to appear for examination upon the judgment creditor’s application showing to the court’s satisfaction that the third person is in possession or control of property in which the judgment debtor has an interest or is indebted to the debtor for more than $250. (Code Civ. Proc., § 708.120.)

 

On Opposition, Assignee of Record L.J. Zhu conclusorily argues—without providing any supporting evidence—that he believes that Fang Fang has control of JBFF International documents because Zhu is “informed and believe[s] that spouse of the owner of the debtor has knowledge of, and possibly possession of assets that belong to the debtor, including community property, and may be called for a 3rd Party Judgment-Debtor Exam pursuant to §CCP 708.120 and particularly §CCP 708.130.”

 

The Court finds Zhu’s arguments are insufficient to sustain the subpoena served on Fang. First, Zhu’s argument is wholly unsupported by any evidence and is stated as a conclusion of fact without evidentiary facts establishing the reasons why Zhu believes and is informed that Fang has control of documents or knowledge of facts relevant to JBFF International’s financial state, other than Fang’s marital relationship with Bo Jin. Second, to the extent that L.J. Zhu points to community property, the Court notes (1) that the Judgment in this action was entered against JBFF International, NOT Bo Jin in his personal capacity and (2) no evidentiary facts have been provided by Zhu establishing a transfer of assets from JBFF International to Fang.

 

Conclusion

 

Bo Jin’s Motion to Quash Order for Appearance and Examination Issued June 3, 2022 is DENIED because, contrary to Jin’s arguments, the Order is not defective in naming JBFF International as Judgment Debtor through its CEO, Bo Jin.

 

Bo Jin’s Motion to Quash Subpoena issued June 6, 2022 is DENIED because its sole supporting argument—that the Subpoena served on him by L.J. Zhu fails because the Motion to Quash the Order for Appearance and Examination prevailing—is unavailing where this Court has denied the Motion to Quash the Order for Appearance and Examination.

 

Fang Fang’s Motion to Quash Subpoena Duces Tecum issued June 6, 2022 is GRANTED because, (1) while the Code of Civil Procedure permits the examination of debtor’s spouses, Assignee of Record L.J. Zhou has not presented sufficient briefing or evidence to convince this Court that Fang has control of documents or personal knowledge as to the collectability of judgment against JBFF International, and (2) Zhu fails to show how Fang’s community property is tied assets transferred from JBFF International to avoid collection of judgment in this action.