Judge: Donald F. Gaffney, Case: Lazo v. Vidaurreta, Date: 2022-12-14 Tentative Ruling

TENTATIVE RULING:

Motion to Compel Satisfaction of Judgment.

Plaintiff Frexiny Lazo moves for an order satisfying the judgment.  For the following reasons, the motion is DENIED. 

A money judgment is satisfied upon full payment of the amount necessary to satisfy the judgment.  (Code Civ. Proc. § 724.010(a); Horath v. Hess (2014) 225 Cal.App.4th 456, 466.) If a money judgment is satisfied by means other than levying a writ (e.g., voluntary full payment by judgment debtor), the judgment creditor must immediately file an acknowledgment of satisfaction of judgment (once the check has cleared the bank) – the court clerk will then enter the satisfaction in the Register of Actions.  (Code Civ. Proc. §§ 724.010, 724.020(b), and 724.030; Horath v. Hess, supra, 225 Cal.App.4th at 466-467.)

Where the judgment creditor is paid by check or other noncash tender, the acknowledgment of satisfaction need not be filed until after the check or other form of payment has been honored (e.g., cleared the bank).  (Code Civ. Proc. § 724.010; see Gray1 CPB, LLC v. SCC Acquisitions, Inc. (2015) 233 Cal.App.4th 882, 894 (Section 724.010 “addresses the timing of a judgment creditor's obligation to file an acknowledgement of satisfaction, not when the judgment has been satisfied”)

Should the judgment creditor fail to file an acknowledgment of satisfaction of judgment, a written demand may be served (personally or by mail) on the judgment creditor's attorney of record requiring the creditor to file an acknowledgment of satisfaction of judgment with the court and/or execute and deliver an acknowledgment of satisfaction of judgment to the person making the demand.  (Code Civ. Proc. § 724.050.)  The judgment creditor must comply with the demand within 15 days after receipt.  (Code Civ. Proc. § 724.050(c).)

Here, Plaintiff’s counsel sent defense counsel a letter by overnight mail on September 19, 2022, enclosing the check to satisfy the full judgment.  (Rothman Dec. ¶ 1 and Ex. 1.)  The check was cashed on October 3, 2022.  (Id. at ¶ 1 and Ex. 3.)  Thus, by Plaintiff’s own admission, the duty to file an Acknowledgment arose no earlier than October 3, 2022.  (Code Civ. Proc., § 724.010(c) (“Where a money judgment is satisfied by payment to the judgment creditor by check … that is to be honored upon presentation by the judgment creditor for payment, the obligation of the judgment creditor to give or file an acknowledgment of satisfaction of judgment arises only when the check or other form of noncash payment has actually been honored upon presentation for payment.”).)  When Plaintiff’s counsel sent defense counsel the letter on September 19, 2022, the judgment had not been satisfied yet. 

Defendant evidently attempted to file an Acknowledgment of Full Satisfaction of Judgment on October 18, 2022 – 15 days after the check was cashed on October 3, 2022 –  but it was rejected by the Clerk because of the format in which it was filed and because it was not notarized.  (ROA 532.)  Defendant re-filed the Acknowledgment on October 25, 2022.  (ROA 536.)

The motion was not ripe at the time it was filed on October 11, 2022. It was filed before the deadline to file an Acknowledgment.  The motion is now moot given that the Acknowledgment has been filed. 

Plaintiff’s requests for sanctions is denied.  Plaintiff is ordered to pay $1,237.50 to Defendant (2.5 hours at $495 per hour) within 30 days.  (Code Civ. Proc. § 724.080.)

Defendant to give notice.