Judge: Jon R. Takasugi, Case: 24STCV12350, Date: 2025-01-28 Tentative Ruling

Case Number: 24STCV12350    Hearing Date: January 28, 2025    Dept: 17

Superior Court of California

County of Los Angeles

DEPARTMENT 17

TENTATIVE RULING

Starcrest’s motion for an order directing it to deposit with the Clerk of the Court $35,000.00 less attorney fees and costs of Interpleader funds is GRANTED. Starcrest is awarded $5,615.58 in attorney fees and costs.

            On 5/15/2024, Plaintiff Big State Property Ventures LLC (Plaintiff) filed suit against Tanujkumar Patel and Starcrest Escrow, Inc., alleging: (1) breach of contract; (2)  breach of covenant of good faith and fair dealing; (3) breach of contract; (4) negligence; and (5) money had and received.

            On 5/29/2024, Starcrest Escrow, Inc. (Starcrest) filed a cross-complaint against Big State Property Ventures, LLC (Big State) and Tanujkumar Patel (Patel) (collectively, Cross-Defendants) alleging: (1) interpleader.

            On 11/5/2024, Starcrest moved for any order of the court discharging and dismissing it from this action with prejudice and ordering it to deposit interpleaded funds, less attorney fees and costs, with the clerk of the court, and the clerk to deposit funds into an interest bearing account.

            The motion is unopposed.

Discussion

            Starcrest argues that it has no interest in the $35,000 funds held by it, except for attorney fees and costs totaling $5,615.58 (Attorney fees $4,552.50; Costs $1,063.08).

            This action arises out of an agreement to purchase property. Starcrest alleges that the parties to the relevant agreement are Patel as the buyer of Property 1 and Property 2, and Big State as the seller of Property 1 and Property 2. The Contract named Starcrest as the escrow agency with responsibility to, inter alia, hold earnest money deposit funds.

On 3/20/2020, Starcrest alleges that escrow was opened, and Patel deposited earnest money deposit funds with Starcrest the purchase of the Property 1 in the amount of $15,000.00 with Escrow No.: 42898-LKS (Deposit #1).

Starcrest also alleges that Patel deposited earnest money deposit funds with Starcrest for the purchase of the Property 2 in the amount of $20,000.00 with Escrow No.: 42893-LKS. (Deposit # 3.)

Starcrest alleges that a dispute ensued between the contracting parties resulting in Big State executing cancellation instructions for both escrows. Starcrest is holding the funds that are in dispute, exposing them to multiple claims.

Pursuant to Code of Civil Procedure (CCP) section 386(b), Starcrest can bring an action for interpleader when multiple claims may be made against it. Section 386(b) states in pertinent part:

Any person, firm, corporation, association or other entity against whom double or multiple claims are made, or may be made, by two or more persons which are such that they may give rise to double or multiple liability, may bring an action against the claimants to compel them to interplead and litigate their several claims.

Upon an admission of no interest in the funds and deposit of monies with the court, the cross-complainant in interpleader then may be discharged from liability and dismissed from the interpleader action. (Dial 800 v. Fesbinder (2004) 118 Cal. App. 4th 32, 43.)

“‘Interpleader is an equitable proceeding by which an obligor who is a mere stakeholder may compel conflicting claimants to money or property to interplead and litigate the claims among themselves instead of separately against the obligor.... After admitting liability and depositing the money or property with the court, the obligor is discharged from liability and freed from the necessity of participating in the litigation between the claimants.’” (4 Witkin, Cal. Procedure (5th ed. 2008) Pleading, § 237, p. 317.)

Here, Starcrest disclaims any interest in the funds, and seeks to deposit the funds with the Court. The Court finds the conditions for interpleader to be met here, and grants Starcrest’s request to deposit the funds into an interest-bearing account.

CCP section 386.6 allows the court to grant a party to an action who follows the procedure set forth in Section 386 or 386.5 reasonable attorney fees and costs from the amounts on deposit with the court. Here, Starcrest submitted evidence to show that it has incurred $3,052.50 in attorney fees and $964.08 in costs through November 1, 2024, and $1,500 in fees and $99.00 in costs after November 1. The Court awards the total sum of $5,615.58 in attorney fees and costs.

Based on the foregoing, Starcrest’s motion for an order directing it to deposit with the Clerk of the Court $35,000.00 less attorney fees and costs of Interpleader funds is granted. Starcrest is awarded $5,615.58 in attorney fees and costs.

It is so ordered.

Dated:  January    , 2025

   Hon. Jon R. Takasugi
   Judge of the Superior Court

Parties who intend to submit on this tentative must send an email to the court at smcdept17@lacourt.org by 4 p.m. the day prior as directed by the instructions provided on the court website at www.lacourt.org.  If a party submits on the tentative, the party’s email must include the case number and must identify the party submitting on the tentative.  If all parties to a motion submit, the court will adopt this tentative as the final order.  If the department does not receive an email indicating the parties are submitting on the tentative and there are no appearances at the hearing, the motion may be placed off calendar.  For more information, please contact the court clerk at (213) 633-0517.