Judge: Holly J. Fujie, Case: 24STCP02333, Date: 2025-01-09 Tentative Ruling

Case Number: 24STCP02333    Hearing Date: January 9, 2025    Dept: 56

SUPERIOR COURT OF THE STATE OF CALIFORNIA

FOR THE COUNTY OF LOS ANGELES - CENTRAL DISTRICT

MOVING PARTY:  Petitioner Clear Recon Corp. (“Petitioner”)

RESPONDING PARTY: None

            The Court has considered the moving papers. No opposition has been filed.

BACKGROUND

             On July 19, 2024, Petitioner filed the instant Petition and Declaration Regarding Unresolved Claims and Deposit of Undistributed Surplus Proceeds of Trustee Sale (the “Petition”) The gross amount of deposit is $223,387.59 (Pet. ¶ 16.)

DISCUSSION

            Civil Code section 2924j subdivision (c) states in pertinent part: If after due diligence, the trustee is unable to determine the priority of the written claims received by the trustee to the trustee’s sale surplus of multiple persons or if the trustee determines there is a conflict between potential claimants the trustee may file a declaration of the unresolved claims and deposit with the clerk of the superior court of the county in which the sale occurred, that portion of the sales proceeds that cannot be distributed, less any charges by the clerk pursuant to this subdivision. (Civ. Code § 2924j subd. (c).)

            Petitioner is the Trustee under Deed of Trust executed by Joel Hyman and recorded on May 12, 2009. (Pet. ¶¶ 2-3.) The Deed of Trust was secured by real property commonly known as 1443 East 92^nd Street, Los Angeles, CA 90002. (Pet. ¶ 2.) The property was sold at a non-judicial foreclosure sale on April 11, 2003 and generated funds exceeding the amount due and owing under the Deed of Trust. (Mot. pp. 1:25-2:5.)

            On April 12, 2023, counsel for Petitioner mailed a Notice of Surplus Funds to all potential claimants via first class mail. (Pet. ¶ 3, Attach. 8.) Petitioner “has determined there is a conflict between potential claimants to the surplus proceeds.” (Pet. ¶¿11(b), Attach. 11(b).) On June 1, 2023, Petitioner received a claim from Goldsmith & Hull APC, attorney for Banco Popular North America. (Pet. Attach. 11(b), Ex. B.) On June 28, 2023, Petitioner received a claim from the Controller, State of California. (Pet. Attach. 11(b), Ex. C.)

On July 19, 2024, Petitioner filed this Petition. The Petition states that the property located at 1443 East 92^nd Street, Los Angeles, CA 90002, was the subject of a trustee sale held on April 11, 2003 (Pet. ¶¶ 2, 4.) The property was sold for $481,000.00 and $227,132.36 in surplus funds remained. (Pet. ¶¶ 6, 7.) A copy of the trustee’s sale guarantee is attached to the Petition. (Pet. ¶ 5, Attach. 5.) The identity, location, and priority of the potential claimants is discussed in the Petition.  (Pet. ¶¶ 8, 11, Attachs. 8, 11(b).)

All claimants have been served with Notice of Petition, Petition, and related documents.  (7/26/2024 Proof of Service.) 

            Petitioner requests permission to deposit the surplus funds with the Court and a court order discharging Petitioner from the matter. 

            Having reviewed the Petition, the Court finds it satisfies the requirements of Civil Code section¿2924j with respect to the trustee’s declaration, trustee’s notice, and service of written notice to all potential claimants to the surplus funds.

            The Motion is GRANTED.

Petitioner is ordered to deposit surplus funds of $223,387.59 with the Court within twenty (20) days of service of this order. 

            Upon deposit of the surplus funds to the Court and filing of the proof of service of the notice of disbursement hearing, Petitioner shall be discharged of further responsibility for the disbursement of sale proceeds. (Civ. Code § 2924j subd. (c).)

A Hearing on Claims to the Undistributed Surplus Funds is set for February 27, 2025 at 8:30 a.m. in Department 56 at the Stanley Mosk Courthouse.

Moving Party is ordered to give notice of this ruling.           

Parties who intend to submit on this tentative must send an email to the Court at SMC_DEPT56@lacourt.org as directed by the instructions provided on the court website at www.lacourt.org.  If the department does not receive an email and there are no appearances at the hearing, the motion will be placed off calendar.

Dated this 9th day of January 2025