Judge Lee S. Arian, Case Number: BC653329, Date: 2024-11-08 Tentative Ruling

On March 6, 2023, Plaintiff Raymond Brown (“Plaintiff”) obtained an Amended Judgment against Defendant American Reclamation, Inc. (“Defendant”) in the amount of $150,739.50. As of November 8, 2024, the balance due on this judgment, with accrued interest, is $176,055.48. The interest accrues at a statutory rate of 10% per annum, or $41.30 per day.

Plaintiff now seeks an assignment order under California Code of Civil Procedure § 708.510. Specifically, Plaintiff requests that Defendant’s contractual right to payment under a ten-year exclusive commercial waste services contract with the County of Los Angeles (“the County contract”) be assigned to Plaintiff to satisfy the outstanding judgment balance. The contract, valued for the collection of trash, recycling, and organic waste, commenced on October 1, 2022, and is set to terminate on September 31, 2032.

California Code of Civil Procedure § 708.510(a) authorizes a court to issue an order directing a judgment debtor to assign to a judgment creditor “all or part of a right to payment due or to become due.” This statute requires that any assignment be limited to the amount necessary to satisfy the judgment (§ 708.510(c)) and provides that the court may consider relevant factors such as the debtor’s right to payments and the balance due on the judgment (§ 708.510(e)).

In In re Advanced Biomedical, Inc., 547 B.R. 337 (Bankr. C.D. Cal. 2016), the court held that assignment orders under § 708.510 can be used to fulfill judgment obligations by transferring payment rights directly to the judgment creditor. This establishes that assignment orders may extend to receivables or other income streams to satisfy an outstanding judgment.

On March 6, 2023, Plaintiff obtained an amended judgment against Defendant in the amount of $150,739.50. As of the date of this hearing, the total balance due, inclusive of accrued interest at the statutory rate of 10% per annum, is $176,055.48. The evidence shows that Defendant has made no payments toward satisfying this judgment since its entry.

Defendant currently holds a ten-year exclusive contract with the County of Los Angeles for commercial waste, recycling, and organic waste collection services in the Foothills area. This contract, which commenced on October 1, 2022, and extends through September 31, 2032, is a substantial revenue-generating asset for Defendant. Pursuant to CCP § 708.510(a), this contract constitutes an assignable “right to payment” due or to become due, which may be used to satisfy a judgment. As established in In re Advanced Biomedical, Inc., 547 B.R. 337 (Bankr. C.D. Cal. 2016), accounts receivable can be assigned under § 708.510 to fulfill a judgment obligation.

Plaintiff has requested that the assignment be limited to the extent necessary to meet the outstanding balance, in compliance with § 708.510(c). Defendant was properly served and has not filed any opposition.

Having met all requirements of § 708.510, the motion is hereby granted.

PLEASE TAKE NOTICE:¿

If a party intends to submit on this tentative ruling,¿the party must send an email to the court at¿sscdept27@lacourt.org¿with the Subject line “SUBMIT” followed by the case number.¿The body of the email must include the hearing date and time, counsel’s contact information, and the identity of the party submitting.

Unless¿all¿parties submit by email to this tentative ruling, the parties should arrange to appear remotely (encouraged) or in person for oral argument.¿You should assume that others may appear at the hearing to argue.

If the parties neither submit nor appear at hearing, the Court may take the motion off calendar or adopt the tentative ruling as the order of the Court.¿ After the Court has issued a tentative ruling, the Court may prohibit the withdrawal of the subject motion.