Judge Lynette Gridiron Winston, Case Number: 24PSCP00100, Date: 2024-05-09 Tentative Ruling

Judge: Lynette Gridiron Winston, Case: 24PSCP00100, Date: 2024-05-09 Tentative Ruling

Case Number: 24PSCP00100 Hearing Date: May 9, 2024 Dept: 6

CASE NAME: Default Resolution Network v. 1924 Vaquero St., West Covina, CA 91791

Petitioner’s Motion for Order to Deposit Surplus Proceeds from the Sale and Discharging Petitioner

TENTATIVE RULING

The Court GRANTS Petitioner’s motion for order to deposit surplus proceeds from the sale and discharging petitioner. The sum of $395,232.16 is hereby ordered deposited with the clerk of the court. The Court will set a further hearing date on the matter of distribution per Civil Code section 2924j, subdivision (d), at the hearing on this motion. The Court awards Petitioner attorney’s fees and costs in the amount of $4,930.05. Petitioner is hereby discharged from any further liability per Civil Code section 2924j, subdivision (c).

Petitioner is ordered to give notice of the Court’s ruling within five calendar days of this order. The Court will give written notice of the hearing.

BACKGROUND

This is a dispute regarding the distribution of surplus proceeds following a trustee’s sale of real property. On February 26, 2024, petitioner Default Resolution Network (Division of Chicago Title Co.) (Petitioner) filed a petition regarding unresolved claims and deposit of undistributed surplus proceeds of trustee’s sale in connection with real property located at 1924 Vaquero St., West Covina, CA 91791 in the amount of $395,232.16. On March 12, 2024, Leixi Chen, administrator of the estate of Wei Wu, filed a claim to the surplus proceeds. No other claims have been filed with the Court.

On March 21, 2024, Petitioner moved for an order to deposit the surplus proceeds from the sale and discharging Petitioner. The motion is unopposed.

REQUESTS FOR JUDICIAL NOTICE

The Court DENIES Petitioner’s request for judicial notice, as the copy of the Trustee’s Deed Upon Sale submitted is not a recorded copy. (Evid. Code § 452, subd. (g); see Jenkins v. JP Morgan Chase Bank, N.A. (2013) 216 Cal.App.4th 497, 536, disapproved on other grounds in Yvanova v. New Century Mortgage Corp. (2016) 62 Cal.4th 919 [court may take judicial notice of recorded documents that cannot reasonably be controverted].)

DISCUSSION

Petitioner requests an order for this Court to deposit the $395,232.16 in surplus proceeds (the Surplus Proceeds) from the trustee’s sale of real property located at 1924 Vaquero St., West Covina, CA 91791 (the Property). Petitioner contends it exercised due diligence by providing notice to potential claimants of their right to claim from the Surplus Proceeds, but it was not able to determine the order of claims. Petitioner thereafter filed the petition for the Court to issue an order depositing the funds per Civil Code section 2924j, subdivision (c).

Petitioner further asks the Court to order a hearing regarding determination of claims to the Surplus Proceeds, and for Petitioner to be discharged from further responsibility for the disbursement of the Surplus Proceeds. Petitioner also seeks an award of attorney’s fees and costs per Civil Code section 2924k, subdivisions (a)(1) and (b), for services rendered in connection with the distribution of the Surplus Proceeds.

The Court finds Petitioner has shown that it is entitled to bring this action, as Petitioner is the trustee that executed the trustee’s sale of the Property, wherein there were surplus proceeds. (Petition, ¶ 16, Attachment 11b.) The Court further finds that Petitioner exercised due diligence and gave proper written notice pursuant to Civil Code section 2924k, subdivisions (a) and (d), and has filed a copy of the trustee’s sales guarantee. Petitioner has shown that multiple parties are claiming some right to the Surplus Proceeds, such as Leixi Chen, Monterra Pointe Homeowners Association c/o S.B.S. Lien Services, and South Hills Community Association c/o S.B.S. Lien Services. (Id.) Petitioner has also shown other potential claimants, such as the Los Angeles County Tax Collector and Ching Ping Chung. (Id.; Id., Attachment 12.)

Based on the foregoing, the Court finds the deposit of the Surplus Proceeds with the clerk of the court and the discharge of Petitioner from any further liability in connection herewith to be proper. (See City of Morgan Hill, supra, 71 Cal.App.4th at pp. 1126–1127.) The Court also awards Petitioner $4,930.05 in attorney’s fees and costs per Civil Code section 2924k, subdivision (a)(1) and (b), finding the amounts requested reasonable and proper. (Civ. Code, § 2924k, subds. (a)(1), (b).) The Court will further set a hearing on the distribution of the Surplus Proceeds at the hearing on this motion per Civil Code section 2924j, subdivision (d). (Civ. Code, § 2924j, subd. (d).)

CONCLUSION

Petitioner is ordered to give notice of the Court’s ruling within five calendar days of this order. The Court will give written notice of the hearing.