Judge: Mark H. Epstein, Case: SS020400, Date: 2023-02-23 Tentative Ruling

Case Number: SS020400    Hearing Date: February 23, 2023    Dept: R

The motion for a charging order is GRANTED.

The court reads the request as seeking only a lien in the amount of the judgment plus interest and post-judgment costs.  The order would place a lien on any monies that would otherwise be distributed to the judgment debtor.  Such an order is appropriate and consistent with the statute, which allows the judgment debtor’s interest to be applied toward the satisfaction of the judgment by way of a charging order.  That is limited to the “transferable interest” that the judgment debtor has, and the charging order “constitutes a lien on a judgment debtor’s transferable interest and requires the limited liability company to pay over to the person to which the charging order was issued any distribution that would otherwise be paid to the judgment debtor.”  (Corp. Code sec. 17705.03.)

In opposition, the judgment debtor claims that judgment creditor is seeking to implicate more than his transferrable interest and rather seeks a lien on other monies.  The court disagrees.  Judgment creditor is not seeking to overstep the transferrable interest.  Judgment debtor also contends that there is insufficient evidence to show he is a member of 101 Studios.  The court disagrees.  The court finds more than adequate evidence of judgment debtor’s membership, including an admission by the judgment debtor.  (Judgment debtor’s “rule of completeness” argument is without even colorable merit.)  Along these lines, the court notes that judgment debtor never denies his membership.  And, parenthetically, if judgment debtor is not a member, then this order will do no mischief by definition.