Judge Lee W. Tsao, Case Number: 22NWCV00618, Date: 2024-10-15 Tentative Ruling

Judge: Lee W. Tsao, Case: 22NWCV00618, Date: 2024-10-15 Tentative Ruling

Case Number: 22NWCV00618 Hearing Date: October 15, 2024 Dept: C

Kendra Olivera vs Evelyn Castillo

Case No.: 22NWCV00618

Hearing Date: October 15, 2024 @ 9:30 a.m.

Tentative Ruling

Judgment Debtor Evelyn Castillo’s Claim of Exemption is GRANTED in part and DENIED in part as set forth below. Judgment Debtor is ordered to pay the remaining judgment of $24,291.40.

Judgment Creditor Kendra Olivera to give notice.

Background

This is a breach of contract action. On July 21, 2022, Plaintiff/Judgment Creditor Kendra Olivera (“Olivera”) filed a Complaint against Defendant/Judgment Debtor Everlyn Castillo (“Castillo”) alleging that Olivera transferred $27,861.00 to Castillo for tickets to Disneyland, Oogie Boogie, and Knotts Scary Farm, among other items, which Castillo never delivered to Olivera.

On March 7, 22, the parties signed a contract stating Castillo would “pay $1,000 monthly and would give a lump sum of $6,781.00 on March 30, 2022 and $5,000 in August, and the balance of $7,071 in December 2022.” (Complaint, ¶10.) Castillo only paid $2000. (Complaint, ¶11.) Olivera sues for the remaining balance of $25,291. (Complaint, ¶18.)

Default was entered against Castillo on September 20, 2022, and default judgment was entered on October 24, 2022.

Castillo submitted a Claim of Exemption on August 14, 2024. Castillo claims an exemption under CCP §§ 704.101 and 704.140 for monies she received due to a car accident. On August 20, 2024, Olivera filed a Notice of Opposition to Claim of Exemption.

Legal Standard

The claim of exemption must be executed under oath and include the name and mailing address of the claimant, a description of the property claimed to be exempt, a financial statement as required by section 703.530, a citation of the statute on which the claim is based, and a statement of facts necessary to support the claim. (Code Civ. Proc., § 703.520, subd. (b).) A financial statement is required where property is claimed as exempt pursuant to a provision exempting property to the extent necessary for the support of the judgment debtor and the spouse and dependents of the judgment debtor. (Code Civ. Proc., § 703.530, subd. (a).) The financial statement must be executed under oath by the judgment debtor and the debtor’s spouse unless the same are living separate and apart, and must include:

(1) The name of the spouse of the judgment debtor;

(2) The name, age, and relationship of all persons dependent upon the judgment debtor or the spouse of the judgment debtor for support;

(3) All sources and the amounts of earnings and other income of the judgment debtor and the spouse and dependents of the judgment debtor;

(4) A list of the assets of the judgment debtor and the spouse and dependents of the judgment debtor and the value of such assets; and

(5) All outstanding obligations of the judgment debtor and the spouse and dependents of the judgment debtor.

(Code Civ. Proc., § 703.530, subds. (b)(1)-(5), (c).)

The hearing on the motion shall be held not later than 30 days from the date the notice of motion was filed with the court unless continued by the court for good cause. (Code Civ. Proc., § 703.570, subd. (a).)

The claim of exemption is deemed controverted by the notice of opposition to the claim of exemption and both shall be received in evidence. (Code Civ. Proc., § 703.580, subd. (c).) 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. (Code Civ. Proc., § 703.580, subd. (c).) If not satisfied, the court shall order the hearing continued for the production of other evidence, oral or documentary. (Code Civ. Proc., § 703.580, subd. (c).)

At the hearing on the claim of exception, the claimant has the burden of proof. (Code Civ. Proc., § 703.580, subd. (b).)

Discussion

Castillo claims an exemption for “any and all money getting from my car accident that has impacted my everyday life. CCP § 704.140, 704.010. (Claim of Exemption, ¶4.)

Olivera argues that the monies received from the Law Offices of Wiesman Piran and/or Infinity Insurance are not exempt.

Under § 704.010, subd. (a)(3), the proceeds of insurance or other indemnification for the loss, damage, or destruction of a motor vehicle is exempt in the amount of $7,500.00. Therefore, the Court finds an exemption in the amount of $7,500.00 from the proceeds of insurance.

The claim of exemption under § 704.010, subd. (a)(3) is GRANTED.

Under CCP § 704.140, subd. (b), an award of damages or a settlement arising out of personal injury is exempt to the extent necessary for the support of the judgment debtor and the spouse and dependents of the judgement debtor. Castillo lists her monthly income as $1,051.00 from CalWorks. (Claim Exemption Form ¶ 2(d).) Castillo also receives $600.00 in food stamps. (Claim Exemption Form ¶ 4(b).) Castillo states that she pays $500.00 for rent, $150.00 for clothing, $150 for transportation and auto expenses, and $100 for laundry and cleaning. (Claim Exemption Form ¶¶ 4(a),(d),(i), (k).) Castillo also lists two children ages 11 and 10. (Financial Statement ¶ 1(b), (c).) Given that her monthly income is $1,051.00, the Court determines that the settlement is exempt to the extent necessary to support Castillo’s dependents.

Olivera argues that Castillo will receive insurance proceeds of $100,000, consisting of $25,000.00 for each daughter and $50,000.00 for Castillo herself. The Court finds that the $50,000.00 for each daughter shall not be garnished. Olivera alleges the current amount owed is $29,733.13. However, it is unclear how Olivera arrives at this amount because only $25,291.40 is requested in the Complaint. (See 7-21-2022 Complaint.) Further. on May 28, 2024, Judge Roger Ito found that Castillo had paid $1,000.00 in sanctions to Olivera which was to be applied towards the judgment. (See 5-28-24 OSC Re Sanctions.) Thus, the Court finds that a balance of $24,291.40 is remaining.

Of the remaining $50,000.00 in insurance proceeds, the Court finds $7,500 is automatically exempt under CCP § 704.010(a)(3) leaving a remaining balance of $42,500 to pay the judgment of $24,291.40. After the $24,291.40 is paid, Castillo will have a remaining balance of $25,708.60 from her settlement funds. The Court determines that these funds, together with the daughters’ insurance proceeds, are sufficient to support Castillo and her two daughters.

Judgment Debtor’s Claim Exemption is GRANTED in part and DENIED in part as set forth above. Judgment Debtor is ordered to pay the remaining $24,291.40 judgment.