Judge: Douglas W. Stern, Case: 21STCV28570, Date: 2022-09-08 Tentative Ruling

Case Number: 21STCV28570    Hearing Date: September 8, 2022    Dept: 52

Tentative Ruling:

Plaintiffs/Judgment Creditors Thomas Nash and Bo Kyung O’Connor’s Motion for a Post-Judgment Assignment Order and Accounting

            Judgment creditors Thomas Nash and Bo Kyung O’Connor move for an order assigning judgment debtor Ninon Aprea’s rights to future payments from Airbnb.com, VRBO.com, and Booking.com for renting her property to tenants or guests.

            CCP § 708.510(a) provides that “the court may order the judgment debtor to assign to the judgment creditor… all or part of a right to payment due or to become due, whether or not the right is conditioned on future developments.”  Assignable payments include but are not limited to six enumerated types, including “[r]ents.”  (CCP § 708.510(a)(2).) 

            Judgment creditors have an unsatisfied judgment against judgment debtor Ninon Aprea.  Aprea owns residential property at 727 N. Martel Ave., Los Angeles, CA 90046, which was the subject property in this landlord/tenant action.  (Linzer Decl., ¶ 10.)  She lists two units at the property for rent on Airbnb.com.  (Linzer Decl., ¶ 10, Exs. C-D.)  Aprea received payments from Airbnb.com regularly from November 2011 to June 2022.  (Linzer Decl., ¶ 11, Ex. E.)  At Aprea’s judgment debtor examination on July 25, 2022, she testified that in the past she has also received income from other short-term rental websites such as Booking.com and VRBO.com.  (Linzer Decl., ¶ 12.)

            Aprea argues the payments are not subject to assignment because income from short-term rentals is not “rent” under CCP § 708.510(a)(2).  Assuming that is correct, it is irrelevant.  The enumerated types of payments are only examples.  (CCP § 708.510(a) [the court may assign payments, “including but not limited to the following types of payments…”].) 

            Aprea also argues she needs these payments to pay her bills.  “[I]n determining whether to order an assignment … the court may take into consideration all relevant factors, including … [t]he reasonable requirements of a judgment debtor who is a natural person.”  (CCP § 708.510(c)(1).)

            The court finds that Aprea’s reasonable requirements do not justify denying or limiting the assignment order.  Her opposition argues she “only enjoys one source of income, being net profits from managing this property.”  (Opp., p. 3.)  Aprea does not, however, state so in her sworn declaration.  She only says she has not “worked or received a call from [sic] my acting services for over one year to date” (Aprea Decl., ¶ 1) and that “I do receive minimal income from the house of 727 N. Martel Ave.”  (Id., ¶ 2.)  She thus only says she earns no income from acting—not from all types of job or other source of income.  She falls short of saying under penalty of perjury that she earns no income from any source other than the property.

The court also finds Aprea is not credible.  Her declaration states “at the most I cleared $500.00 over a breakeven” from the property, but her own figures show her net monthly income from the property is $1,312.23.  (Aprea Decl., ¶ 2, Ex. A.) 

Moreover, Aprea’s figures are based on a “room rate” of $350 per day.   (Aprea Decl., Ex. A.)  But plaintiff’s evidence shows she lists two rentals on Airbnb: the 2-bedroom, 2-bath main house for $504 per night (Linzer Decl., Ex. C) and the 1-bed, 1-bath guest house for $246 per night (Linzer Decl., Ex. D). 

Assuming Aprea accurately accounted for her expenses and using the 85% occupancy rate she estimates, the monthly gross income from the property would therefore be $19,375 monthly—more than double the $9,041.67 she claims.  Airbnb must take some portion and therefore does not pay Aprea that full amount.  But for Aprea’s $350 “room rate” to be correct, Airbnb would have to take $400 of the $750 combined rate for the two listings, or 53%.  That is not plausible.

            Judgment creditors show good cause for an order assigning Aprea’s right to payments from obligors Airbnb.com, VRBO.com, and Booking.com.  There is a substantial probability she will receive payments from the obligors in the future.

Accounting

            In addition to an assignment, judgment creditors seek an order that Aprea must “file with this Court and serve on Judgment Creditors’ counsel, an accounting of any monies received from any Obligor every 30 days.”  (Prop. Order, ¶ 6.)  Judgment creditors argue the court may make such an order because it is “necessary to carry” the assignment “into effect” under CCP § 187.  But as the moving papers acknowledge, there is no statutory provision for such an accounting.  The enforcement of judgments law is a comprehensive statutory scheme.  The court declines to issue an order for a monthly accounting not provided for under that scheme.

Disposition

The motion is granted in part.  The court will sign the proposed order with one alteration: striking paragraph 6, “That Judgment Debtor Ninon Aprea is ordered to file with this Court and serve on Judgment Creditors’ counsel, an accounting of any monies received from any Obligor every 30 days, beginning with October 1, 2022, or the first day of the second month following issuance of this Order.”