Judge: Mark A. Young, Case: 22SMCV00917, Date: 2023-04-11 Tentative Ruling
Case Number: 22SMCV00917 Hearing Date: April 11, 2023 Dept: M
CASE NAME: Greenspoon
Marder LLP, v. Clippinger
CASE NO.: 22SMCV00917
MOTION: Motion
for Assignment
HEARING DATE: 4/11/2023
Legal
Standard
Code of Civil Procedure section
708.510(a) states, in relevant part:
(a)
Except as otherwise provided by law, upon application of the judgment creditor
on noticed motion, the court may order the judgment debtor to assign to the
judgment creditor or to a receiver appointed pursuant to Article 7 (commencing
with Section 708.610) all or part of a right to payment due or to become due,
whether or not the right is conditioned on future developments, including but
not limited to the following types of payments:
(1)
Wages due from the federal government that are not subject to withholding under
an earnings withholding order.
(2)
Rents.
(3)
Commissions.
(4)
Royalties.
(5)
Payments due from a patent or copyright.
(6)
Insurance policy loan value.
Code of Civil Procedure section
708.510(c) provides factors for the Court to consider in granting an assignment
order:
[I]n
determining whether to order an assignment or the amount of an assignment
pursuant to subdivision (a), the court may take into consideration all relevant
factors, including the following:
(1)
The reasonable requirements of a judgment debtor who is a natural person and of
persons supported in whole or in part by the judgment debtor.
(2)
Payments the judgment debtor is required to make or that are deducted in
satisfaction of other judgments and wage assignments, including earnings
assignment orders for support.
(3) The amount remaining due on the
money judgment.
(4)
The amount being or to be received in satisfaction of the right to payment that
may be assigned.
The Court may order the assignment
of property only to the extent necessary to satisfy the money judgment. (CCP, §
708.510(d).) The motion must include sufficient facts to permit the Court to
make a determination that the payment is assignable to the judgment creditor.¿(Kracht
v. Perrin¿(1990) 219 Cal.App.3d 1019, 1023.)¿ The Court may also issue “an
order restraining the judgment debtor from assigning or otherwise disposing of
the right to payment that is sought to be assigned” “upon a showing of need for
the order.” (CCP § 708.520(a), (b).)
Analysis
Judgment creditor Greenspoon Marder, LLP (“GM”) moves
for an assignment order against judgment debtor Robert Clippinger as follows:
1. To assign Debtors' interest,
right to payment due, or to become due, in commissions, payments, advances,
etc. from all third parties, including, but not limited to, (1) Clippinger
Investment Properties, Inc., (2) 12 &K Street Mall Partners, LLC, (3) CIP
Capital Cathedral, LLC and (4) CIP 627 N Larchmont LLC, to GM to the extent
necessary to pay the judgment entered in this action in full, including accrued
interest through the date of payment. Code of Civil Procedure Section 708.51;
and
2. Restraining Debtor and any
representative, agent, employee or attorney of Debtor and any person(s) in
active concert and participating with Debtor from encumbering, assigning,
disposing of or spending the Funds and/or all rights to payment thereunder.
Code of Civil Procedure Section 708.520.
On October 26, 2022, a money
judgment was entered in favor of GM against Clippinger in the amount of
$292,821.28. The current balance on the judgment is at least $297,149.92. On
December 2, 2022, a writ of execution was issued in the amount of $293,582.09,
plus interest accruing at the amount of $80.16 per day starting from December
2, 2022. On December 19, 2022, a judgment lien was filed with the California
Secretary of State. On December 2, 2022, an abstract of judgment was recorded
in the Los Angeles County Recorder's office. Clippinger has not voluntarily
paid any of the Judgment.
GM provides evidence that Clippinger
has ownership interests in (I) Clippinger Investment Properties, Inc., (2) 12
& K Street Mall Partners, LLC, (3) CIP Capital Cathedral, LLC and (4) CIP
627 N Larchmont LLC, and has rights to distributions of capital from those
entities. Specifically, GM provides Clippinger’s declaration in a Chapter 11
bankruptcy case, In re: Robert Wade Clippinger, Case No.
2:20-bk-19869-BR. In that matter, Clippinger disclosed that he possessed (1) a
100% interest in Clippinger Investment Properties, Inc. with a fair market
value of $1,500,000 (2) an 87.51 % interest in 12 & K Street Mall Partners,
LLC with a fair market value $17,064.450, (3) a 25% interest in CIP Capital
Cathedral, LLC with fair market value of $2,500,000 and (4) a 20% interest in
CIP 627 N. Larchmont LLC with a fair market value of $920,000. GM believes that
the Clippinger is/will be receiving equity distributions from those entities. Thus,
GM provides sufficient facts demonstrating that the above payments are assignable.
Accordingly, GM’s motion is GRANTED.