Judge: Layne H. Melzer, Case: 2008-00102394, Date: 2023-08-10 Tentative Ruling

Attorneys for Assigne of Record

Motion for an Order Authorizing the Foreclosure of Philip Immel’s Interest in Dolphin Entertainment, LLC

Judgment Creditor WVJP 2021-4, LP (“Judgment Creditor”) seeks an order authorizing Judgment Creditor to foreclose on its Charging Order against the transferrable interest of Judgment Debtor Philip Immel (“Judgment Debtor”) in Dolphin Entertainment, LLC (“Dolphin Entertainment”). 

To the extent necessary to effectuate the collection of distributions pursuant to a charging order, the Court may foreclose the lien and order the sale of the transferable interest upon a showing that distributions under a charging order will not pay the judgment debt within a reasonable time.  (Corp. Code, § 17705.03, subd. (b)(3).) 

The Court may authorize the sale of a debtor’s transferable interest if the creditor shows:  (1) the creditor obtained a charging order; (2) the judgment remains unsatisfied; and (3) the foreclosure does not unduly interfere with the entity’s business.  (Hellman v. Anderson (1991) 233 Cal.App.3d 840, 842 and 850.)  The burden of proving undue interference with the entity’s business will be upon the judgment debtor and/or the other members.  (Id., at 853.) 

Judgment Creditor showed it obtained a charging order against Judgment Debtor’s interest in Dolphin Entertainment, LLC, the judgment remains satisfied, and distributions under the 5/18/2023 charging order will not pay the debt within a reasonable time.  (Donoyan Decl., ¶¶ 15-18, Exhibit 2, 11:6-8, 31:17-19, 32:8-10, Exhibit 3 [at its Addendum No. 1], and Exhibit 4, Section 1.1 and 4.1.) 

Judgment Debtor did not oppose the motion and did not show the foreclosure would unduly interfere with Dolphin Entertainment’s business.

Accordingly, the unopposed motion is granted.

Judgment Creditor shall give notice.