Judge: Lee W. Tsao, Case: 21NWCV00559, Date: 2023-02-22 Tentative Ruling

Case Number: 21NWCV00559    Hearing Date: February 22, 2023    Dept: C

AMUR EQUIPMENT FINANCE, INC. v. MASTERFREIGHT LTD.

CASE NO.:  21NWCV00559

HEARING:  2/22/23 @ 1:30 PM

#6

TENTATIVE RULING

The court will hear from Judgment Debtor.

A Judgment was entered against Defendants Masterfreight and Miguel Pastor on December 17, 2021, for $59,193.22.  Judgment Creditor seeks to enforce the judgment.

Judgment Debtor  Miguel Pastor filed a Claim of Exemption on December 15, 2022.

(a) The claim of exemption and notice of opposition to the claim of exemption constitute the pleadings, subject to the power of the court to permit amendments in the interest of justice.  (b) At a hearing under this section, the exemption claimant has the burden of proof.  (c) The claim of exemption is deemed controverted by the notice of opposition to the claim of exemption and both shall be received in evidence. If no other evidence is offered, the court, if satisfied that sufficient facts are shown by the claim of exemption (including the financial statement if one is required) and the notice of opposition, may make its determination thereon. If not satisfied, the court shall order the hearing continued for the production of other evidence, oral or documentary.  (d) At the conclusion of the hearing, the court shall determine by order whether or not the property is exempt in whole or in part. Subject to Section 703.600, the order is determinative of the right of the judgment creditor to apply the property to the satisfaction of the judgment. No findings are required in a proceeding under this section.  (e) The court clerk shall promptly transmit a certified copy of the order to the levying officer. Subject to Section 703.610, the levying officer shall, in compliance with the order, release the property or apply the property to the satisfaction of the money judgment.  (f) Unless otherwise ordered by the court, if an exemption is not determined within the time provided by Section 703.570, the property claimed to be exempt shall be released.  (CCP § 703.580.)

“A deposit account is exempt without making a claim in the following amount:

(1) One thousand seven hundred fifty dollars ($1,750) where one depositor is the designated payee of the directly deposited public benefits payments.

(2) Three thousand five hundred dollars ($3,500) where one depositor is the designated payee of directly deposited social security payments.

(3) Two thousand six hundred dollars ($2,600) where two or more depositors are the designated payees of the directly deposited public benefits payments, unless those depositors are joint payees of directly deposited payments that represent a benefit to only one of the depositors, in which case the exemption under paragraph (1) applies.

(4) Five thousand two hundred fifty dollars ($5,250) where two or more depositors are the designated payees of directly deposited social security payments, unless those depositors are joint payees of directly deposited payments that represent a benefit to only one of the depositors, in which case the exemption under paragraph (2) applies.

(c) The amount of a deposit account that exceeds the exemption provided in subdivision (b) is exempt to the extent that it consists of payments of public benefits or social security benefits.

(d) Notwithstanding Article 5 (commencing with Section 701.010) of Chapter 3, when a deposit account is levied upon or otherwise sought to be subjected to the enforcement of a money judgment, the financial institution that holds the deposit account shall either place the amount that exceeds the exemption provided in subdivision (b) in a suspense account or otherwise prohibit withdrawal of that amount pending notification of the failure of the judgment creditor to file the affidavit required by this section or the judicial determination of the exempt status of the amount. Within 10 business days after the levy, the financial institution shall provide the levying officer with a written notice stating (1) that the deposit account is one in which payments of public benefits or social security benefits are directly deposited by the government or its agent and (2) the balance of the deposit account that exceeds the exemption provided by subdivision (b). Promptly upon receipt of the notice, the levying officer shall serve the notice on the judgment creditor. Service shall be made personally or by mail.”  (CCP § 704.080(b).)

Judgment Debtor has filed a Financial Statement indicating a gross monthly income of $5,000.  Although Judgment Creditor references an Employer’s Return (Wage Garnishment) from Norm Reeves Honda Superstore with a conflicting gross monthly income is $3,034.76, Judgment Creditor did not lodge this evidence before the court.

Based on Judgment Debtor’s Financial Statement, Judgment Debtor’s net income would be $4,032.00.  Deducting monthly expenses of $3,250.00, $1,984.00 constitutes monthly income that is subject to levy.

As it is Judgment Debtor’s burden, the court will hear from Judgment Debtor why the court should not levy 25% of $1,984.00.