Judge: Douglas W. Stern, Case: BC488459, Date: 2022-08-26 Tentative Ruling

Case Number: BC488459    Hearing Date: August 26, 2022    Dept: 52

Tentative Ruling:

Judgment Creditor Wells Fargo Merchant Services, LLC’s Motions for:
(1) Order to Charge Member’s Interest, and (2) Assignment Order

Order to Charge Member’s Interest

            Judgment creditor Wells Fargo Merchant Services, LLC moves for an order to charge judgment debtor Mario Borunda’s interest in T.i. Construction Services LLC. 

CCP § 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 15907.3, 16504, or 17705.03 of the Corporations Code.”

Corporations Code § 17705.03(a) provides, “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.”

Judgment creditor has an unsatisfied judgment against judgment debtor Mario Borunda.  On June 2, 2022, the judgment was renewed in the amount of $56,599.50.  (Roza Decl., ¶ 5.)  Borunda did not object to the renewal of judgment. 

Borunda has a membership interest in a limited liability company.  On behalf of T.i. Construction Services LLC, on April 25, 2022, Borunda signed and filed a statement of information with the Secretary of State listing himself as the LLC’s only manager or member.  (Roza Decl., ¶ 10, Ex. B.)

Judgment creditor therefore can enforce its judgment via an order charging judgment debtor’s interest in T.i. Construction Services LLC in the amount of $57,933.08 for the renewed judgment plus accrued interest from June 2 to August 26, 2022.

The motion is granted.  The court will sign the proposed order.

Assignment Order

            Judgment creditor Wells Fargo Merchant Services, LLC moves for an order assigning judgment debtor Mario Borunda’s rights to future payments from in T.i. Construction Services LLC.

            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.”

            As discussed above, judgment creditor has an unsatisfied judgment against judgment debtor Mario Borunda, who owns an interest in T.i. Construction Services LLC.  The statement of information filed with the secretary of state indicates Borunda is the limited liability company’s only member or manager.  (Roza Decl., ¶ 10, Ex. B.)  There is a substantial probability that the company compensates Borunda for his services as a manager.  Judgment creditor therefore can enforce its judgment via an assignment order. 

Finally, judgment creditor’s motion acknowledges that if payments due from T.i. Construction Services LLC to Borunda constitute earnings subject to an automatic exemption, no more than 25% of each payment shall be assigned.  (See CCP § 706.050.)

The motion is granted.  The court will sign the proposed order.