Judge: Maurice A. Leiter, Case: 21STCV43430, Date: 2025-05-28 Tentative Ruling

Case Number: 21STCV43430    Hearing Date: May 28, 2025    Dept: 54

Hearing Date: May 28, 2025

Department 54, Judge Maurice A. Leiter

Motion for Assignment Order

Moving Party: Plaintiffs/Judgment Creditors Joel Bernknopf and John Lamorte

Responding Party: None

T/R:     JUDGMENT CREDITORS’ MOTION IS GRANTED.

JUDGMENT CREDITORS TO NOTICE.

If the parties wish to submit on the tentative, please email the courtroom at SMCdept54@lacourt.org with notice to opposing counsel (or self-represented party) before 8:00 am on the day of the hearing.

The Court considers the moving papers. No opposition has been received.

Code Civ. Proc. § 708.510(a) provides for assignment orders and states: 

(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.

A court may take into consideration all relevant factors in determining whether to issue an assignment order, and the only constraints placed on the court are that the right to payment be assigned only to the extent necessary to satisfy the creditor’s money judgment and that, where part of the payments are exempt, the amount of payments assigned should not exceed the difference between the gross amount of the payments and the exempt amount. (CCP §§ 708.510 (c), (d) (e) and (f).) The burden is on the debtor to show that an exemption applies. (CCP § 703.580(b).) 

Plaintiffs/Judgment Creditors move for an order assigning the interests of Judgment Debtors ARC-V, Inc. and ARC-IV, LLC. in two promissory notes entered into between ARC-V, Inc. and Hanger Prosthetics & Orthotics, Inc., and ARC-IV, LLC and Hanger Prosthetics & Orthotics, Inc., and all rights to payment thereunder, to the Judgment Creditors to the extent necessary to pay the Judgment Creditors’ Judgment entered in this action in full, including accrued interest through the date of payment. The promissory notes are for the sale of Defendants’ assets. Defendants have not opposed this motion to show that an exemption applies.

Plaintiffs/Judgment Creditors have shown entitlement to assignment of payments generated from Defendants’ business activities. The motion is GRANTED.