Judge: Katherine Chilton, Case: 19STCP03270, Date: 2023-01-11 Tentative Ruling

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Case Number: 19STCP03270     Hearing Date: January 11, 2023    Dept: 25

PROCEEDINGS:      MOTION FOR ASSIGNMENT ORDER AND ORDER RESTRAINING JUDGMENT DEBTOR

MOVING PARTY:   Judgment Creditor MGM Grand Hotel, LLC

RESP. PARTY:         None

MOTION FOR ASSIGNMENT ORDER

(CCP §§ 708.510, 708.520)

TENTATIVE RULING:

Judgment Creditor MGM Grand Hotel, LLC’s Motion for Assignment Order is GRANTED AS SET FORTH HEREIN.  Creditor is assigned a) all rent from Judgment Debtor’s ownership interest in real property, including but not limited to, property located at 843 E. 6th Street Pomona, CA 91766, and 1202 S. Main Street Pomona, CA 91766, and b) all commissions, royalties, profit sharing, and/or other earnings owed and or payable to Debtor from D.J. Bronson, Inc.

A restraining order is also issued preventing Debtor Ding from assigning or otherwise disposing of his right to payments received from his interest in any real property or D.J. Bronson, Inc., LLC.

SERVICE: 

[X] Proof of Service Timely Filed (CRC, rule 3.1300)                 OK

[X] Correct Address (CCP §§ 1013, 1013a)                                                 OK

[X] 16/21 Court Days Lapsed (CCP §§ 12c, 1005(b))                     OK

OPPOSITION:          None filed as of January 8, 2023.               [   ] Late                      [X] None

REPLY:                     None filed as of January 8, 2023.               [   ] Late                      [X] None

ANALYSIS:

I.                Background

On December 27, 2018, in the District Court of Clark County, State of Nevada, the court entered a judgment for Judgment Creditor MGM Grand Hotel, LLC (“Creditor” or “MGM”) and against Judgment Debtor Justin Ding aka Justin Z. Ding aka Justin Zuoqin Ding aka Justin Z. Ding Sr. aka Zuoqin Ding aka Justin Zuo Qin (“Debtor” or “Ding”) in the principle amount of $10,000.00, $1,179.45 in interest, $3,440.00 in attorney’s fees, and $853.53 in costs.  (7-25-19 Application for Entry of Judgment, pp. 7-9.)

Creditor domesticated the Judgment in California on July 25, 2019, in the amount of $16,538.96.  (7-25-19 Notice of Entry of Judgment.)

On November 28, 2022, Creditor filed the instant Motion for Assignment Order and for Order Restraining Judgment Debtor (the “Motion”).

No opposition has been filed.

II.              Legal Standard

            Code of Civil Procedure § 708.510(a) states, in relevant part:

(a) Except as otherwise provided by law, upon application of the judgment creditor on noticed motion, the court may order the judgment debtor to assign to the judgment creditor or to a receiver appointed pursuant to Article 7 (commencing with Section 708.610) all or part of a right to payment due or to become due, whether or not the right is conditioned on future developments, including but not limited to the following types of payments:

(1) Wages due from the federal government that are not subject to withholding under an earnings withholding order.

                        (2) Rents.

                        (3) Commissions.

                        (4) Royalties.

                        (5) Payments due from a patent or copyright.

                        (6) Insurance policy loan value.

Code of Civil Procedure section 708.510(c), further provides:

[I]n determining whether to order an assignment or the amount of an assignment pursuant to subdivision (a), the court may take into consideration all relevant factors, including the following:

(1) The reasonable requirements of a judgment debtor who is a natural person and of persons supported in whole or in part by the judgment debtor.

(2) Payments the judgment debtor is required to make or that are deducted in satisfaction of other judgments and wage assignments, including earnings assignment orders for support.

(3) The amount remaining due on the money judgment.

(4) The amount being or to be received in satisfaction of the right to payment that may be assigned.

Construing all the applicable statutes together, it seems clear that the “assignment order” contemplated by Code of Civil Procedure § 708.510, et seq. must include a court order that assigns a right to payment outright (not simply an order directing the judgment debtor to do so).

The Court may also issue “an order restraining the judgment debtor from assigning or otherwise disposing of the right to payment that is sought to be assigned” “upon a showing of need for the order.” (Code Civ. Proc., § 708.520(a), (b).)

III.            Discussion

            Creditor seeks a court order assigning “judgment debtor's interest in rents and rights to payment thereunder, to the judgment creditor to the extent necessary to pay the judgement creditor's judgment in full, including accrued interest through the date of payment.”  (Mot. p. 2.)  Creditor also moves for an order restraining Debtor “and any servant, agent, employee, or attorney for the judgment creditor and any person(s) in active concert and participating with the judgment debtor from encumbering, assigning, disposing, or spending the rents and all rights to payment thereunder.”  (Ibid.)

On July 25, 2019, judgment was entered against Debtor for $16,538.96.  (Orzel Decl. ¶ 2.)  Along with post-judgment interest, calculated at 10% per annum, there remains an outstanding balance of $21,804.24 as of September 29, 2022.  (Ibid.)  Debtor has not made any payments toward the judgment.  (Ibid.)  Creditor believes that Debtor has a right to the following payments:

a)     All rent from Debtor's ownership interest in real property including but not limited to property located at 843 E. 6th Street Pomona, CA 91766, and 1202 S. Main Street Pomona, CA 91766. (Ibid. at ¶ 4(a), Exs. 2-3.)  Creditor’s contention is based on information found on Sandicor.com, “an association of realtors website” with a database for properties located in several counties, including Los Angeles County.  (Ibid.)

b)     “Commissions, royalties, profit sharing, and/or other earnings from Judgment Debtor' ownership interest and/or control of D.J. Bronson, Inc.”  (Ibid. at ¶ 4(b), Ex. 4.)

According to Creditor, “the right to payments sought to be assigned herein has not been previously assigned.”  (Ibid. at ¶ 5.)

            Creditor also argues that “[t]here is a need to restrain the Judgment Debtor from encumbering, assigning, disposing of or spending the commissions because the Judgment Debtor would be able to freely spend any or all of said rents, commissions, or other earnings and avoid the payment due and owing under the judgment.”  (Ibid. at ¶ 6.)

            Debtor has not opposed the Motion.

            Based on the above, the Court finds that Debtor may receive rent from his ownership interest in real property, as well as commissions, royalties, profit sharing, or other earnings from his ownership interest in D.J. Bronson, Inc.  Thus, Creditor’s request for an assignment order for payments to Debtor from these two sources is GRANTED.  Creditor’s request for an order restraining Debtor from assigning his rights to payments received from his interest in real property or D.J. Bronson, Inc. or otherwise disposing of that income is also GRANTED.

IV.           Conclusion & Order

For the foregoing reasons,

Judgment Creditor MGM Grand Hotel, LLC’s Motion for Assignment Order is GRANTED AS SET FORTH HEREIN.  Creditor is assigned a) all rent from Debtor’s ownership interest in real property, including but not limited to, property located at 843 E. 6th Street Pomona, CA 91766, and 1202 S. Main Street Pomona, CA 91766, and b) all commissions, royalties, profit sharing, and/or other earnings owed and or payable to Judgment Debtor from D.J. Bronson, Inc.

A restraining order is also issued preventing Judgment Debtor Ding from assigning or otherwise disposing of his right to payments received from his interest in real property or D.J. Bronson, Inc., LLC.

Moving party is ordered to give notice.