Judge Mark E. Windham, Case Number: 19STLC09306, Date: 2024-05-08 Tentative Ruling

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Judgment Creditor American Contractors Indemnity Company’s Motion for Order of Assignment of Payments, for Order Restraining Judgment Debtor from Assigning or Otherwise Disposing of the Right to Payment, and for Order Compelling Accounting is GRANTED WITH RESPECT TO PAYMENTS MADE TO JUDGMENT DEBTOR BY MGM DRYWALL, INC.

JUDGMENT DEBTOR IS TO FILE AND SERVE A PROPOSED ORDER IN ACCORDANCE WITH THIS RULING WITHIN 20 DAYS.

On October 8, 2019, Plaintiff American Contractors Indemnity Company (“Judgment Creditor”) filed a Complaint against Defendant Jose Luis Guillen Ramirez aka Jose Luis Guillen (“Judgment Debtor) for breach of contract. On May 6, 2020, this Court entered default judgment against Judgment Debtor for the total amount of $15,728.96.

On February 27, 2024, Judgment Creditor filed the instant Motion for Order of Assignment of Payments, for Order Restraining Judgment Debtor from Assigning or Otherwise Disposing of the Right to Payment, and for Order Compelling Accounting. No opposition has been filed to date.

Under Code of Civil Procedure, section 708.510, subdivision (a), the moving statute, the Court may order the judgment debtor to assign to the judgment creditor or to an appointed receiver all or part of a right to payment due or to become due. The types of payments that can be assigned include wages due from the federal government if not subject to a withholding order, rents, commissions, royalties, patent or copyright payments, and insurance policy loan value. (Code Civ. Proc., § 708.510, subd. (a).)

Relevant factors the Court may take into consideration when making an assignment order include the judgment debtor’s reasonable requirements if they are a natural person, payments the judgment debtor is required to make to satisfy other judgments and wage assignments, the amount remaining due on the judgment, and the amount to be received in satisfaction of the right to payment that may be assigned.

(Code Civ. Proc., § 708.510, subd. (c).) Construing all the applicable statutes together, the “assignment order” contemplated by Code of Civil Procedure, section 708.510, et seq. must include a court order that assigns a right to payment outright (not simply an order directing the judgment debtor to do so).

Here, Judgment Creditor seeks an order (1) directing payments made by MGM Drywall, Inc. or out of MGM Drywall, Inc.’s account(s) to Judgment Debtor be assigned to Judgment Creditor; (2) directing Judgment Debtor to turn over to Judgment Creditor any payments made by MGM Drywall, Inc. or out MGM Drywall, Inc.’s account(s); (3) restraining Judgment Debtor or any servant, agent, employee, attorney, or anyone else acting on his behalf or jointly with him from assigning or otherwise disposing of the right to payment; and (4) compelling Judgment Debtor to provide, file, and serve an accounting every other month as a means of monitoring Judgment Debtor’s activity and to ensure compliance with the Court’s orders. (Motion, pp. 1:24-2:15.)

On May 6, 2020, judgment was entered in Judgment Creditor’s favor and against Judgment Debtor in the amount of $15,728.96. (Motion, Murray Decl., ¶ 2, Exh. 1.) Furthermore, Judgment Creditor has attempted to enforce its judgment but has only obtained $500.65 through a bank levy on JPMorgan Chase Bank, N.A. (Id. at ¶ 3, Exh. 2.) Judgment Creditor also avers that it subpoenaed Judgment Debtor’s bank records from JPMorgan Chase Bank, N.A. and discovered he still works as an unlicensed contractor for certain customers, including MGM Drywall, Inc. (Id. at ¶¶4-5, Exhs. 3-4.) Judgment Debtor endorses checks from MGM Drywall, Inc. and deposits them. (Id. at ¶7 and Exh. 4.)

Based on the foregoing, the Court finds that Judgment Creditor’s motion for an order of assignment of payments, restraining Judgment Debtor from assigning or otherwise disposing of the right to payment, and compelling accounting is warranted under the law. Judgment Creditor has provided sufficient evidence to support that Judgment Debtor consistently receives payments from MGM Drwyall, Inc.

Therefore, Judgment Creditor American Contractors Indemnity Company’s Motion for Order of Assignment of Payments, for Order Restraining Judgment Debtor from Assigning or Otherwise Disposing of the Right to Payment, and for Order Compelling Accounting is GRANTED WITH RESPECT TO PAYMENTS MADE TO JUDGMENT DEBTOR BY MGM DRYWALL, INC.

JUDGMENT DEBTOR IS TO FILE AND SERVE A PROPOSED ORDER IN ACCORDANCE WITH THIS RULING WITHIN 20 DAYS.