Judge: Mark E. Windham, Case: 23STLC01148, Date: 2024-06-18 Tentative Ruling

Case Number: 23STLC01148    Hearing Date: June 18, 2024    Dept: 26

XQB Management, Inc. v. Morgan, et al.

MOTION FOR ASSIGNMENT ORDER

(CCP § 708.510)

TENTATIVE RULING:

Judgment Creditor XQB Management, Inc. dba RE/Max One’s Motion for an Assignment Order is GRANTED. JUDGMENT CREDITOR IS AWARDED POST-JUDGMENT ATTORNEY’S FEES OF $1,000.00. JUDGMENT CREDITOR’S PROPOSED ORDER IS SIGNED AND FILED THIS DATE.

ANALYSIS:  

On February 15, 2023, Plaintiff XQB Management, Inc. dba RE/Max One (“Judgment Creditor”) filed this action against Defendants Kelly Alexandria Morgan (“Judgment Debtor) and Beverly and Company, Inc. Beverly and Company, Inc. was dismissed on July 18, 2023. On February 28, 2024, this Court entered default judgment against Judgment Debtor for the total amount of $6,923.61.

Judgment Creditor filed the instant Motion for an Assignment Order on April 12, 2024. No opposition has been filed to date.

Discussion

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 from Beverly and Company, Inc. to Judgment Debtor be made to Judgment Creditor instead; and (2) directing Beverly and Company to turn over to Judgment Creditor any funds pursuant to the assignment order. (Motion, pp. 1:24-2:15.)

On February 28, 2024, judgment was entered in Judgment Creditor’s favor and against Judgment Debtor in the amount of $6,923.61. (Motion, Malek Decl., ¶2, Exh. A.) Judgment Debtor has made no payment towards the judgment; meanwhile interest on the judgment is accruing at $1.89 per day. (Id. at ¶2.) The total amount owed to Judgment Creditor as of the filing of this Motion is $7,109.50. (Ibid.) The Motion demonstrates that Judgment Debtor is currently a real estate agent affiliated with Beverly and Company, Inc. (Id. at Exh. B.) Based on the foregoing, the Court finds that Judgment Creditor’s motion for an order of assignment of payments from Beverly and Company, Inc. is proper.

Finally, Judgment Creditor seeks an award of attorney’s fees pursuant to Code of Civil Procedure section 685.040. “The judgment creditor may claim under this section the following costs of enforcing a judgment: . . . (6) Attorney's fees, if allowed by Section 685.040.” (Code Civ. Proc., § 685.070, subd. (a).) Code of Civil Procedure, section 685.040 states: “The judgment creditor is entitled to the reasonable and necessary costs of enforcing a judgment. Attorney’s fees incurred in enforcing a judgment are not included in costs collectible under this title unless otherwise provided by law. Attorney’s fees incurred in enforcing a judgment are included as costs collectible under this title if the underlying judgment includes an award of attorney’s fees to the judgment creditor pursuant to subparagraph (A) of paragraph (10) of subdivision (a) of Section 1033.5.” Also, the motion must be brought with two years of the incurred costs. (Code Civ. Proc., § 685.080, subd. (a).)

The default judgment in this action included an award of attorney’s fees, making the request for post-judgment fees appropriate. Judgment Creditor’s attorney bills at $400.00 per hour, which is reasonable for a breach of contract action in the limited jurisdiction court. (Motion, Malek Decl., ¶4.) The attorney spent 2.1 hours preparing the instant Motion and anticipates an hour to attend the hearing. (Ibid.) Given the Motion is uncontested and the relief sought is being granted, the appearance time should reasonably be reduced to 0.4 hours. Accordingly, attorney’s fees are awarded in the amount of $1,000.00 based on 2.5 hours billed at $400.00 per hour.

Conclusion

Judgment Creditor XQB Management, Inc. dba RE/Max One’s Motion for an Assignment Order is GRANTED. JUDGMENT CREDITOR IS AWARDED POST-JUDGMENT ATTORNEY’S FEES OF $1,000.00. JUDGMENT CREDITOR’S PROPOSED ORDER IS SIGNED AND FILED THIS DATE.

Moving party to give notice.