Judge Michael J. Strickroth, Case 2020-01170738 2022-11-07 Tentative Ruling

Judge: Michael J. Strickroth, Case: 2020-01170738, Date: 2022-11-07 Tentative Ruling

Claim of Exemption – Levy

Plaintiffs Danilo Cajayon and Daisylyn Cajayon’s (Judgment Creditors) Claim of Exemption is GRANTED.

No property is exempt unless specifically made so by statute, courts may not increase the statutory exemptions, but exemption laws are to be construed liberally in the debtor’s favor. Estate of Brown (1899) 123 Cal. 399, 401; Ford Motor Credit Co. v. Waters (2008) 166 Cal. App. 4th Supp. 1, 8.

Judgment Creditors’ Claim of Exemption previously came on for hearing on 10-03-2022, at which time the court continued the hearing to 11-07-2022 and ordered as follows: “Therefore, the Court CONTINUES the hearing on Claim of Exemption to 11-07-2022 at 1:45 pm in Department C15. Judgment Creditors are to serve each Judgment Debtor with their Opposition and Notice of Hearing on Claim of Exemption. Any response to Judgment Creditors’ opposition is due by 10-31-2022.” (See ROA No. 77.)

On 10-12-2022, Judgment Creditors filed a Proof of Service by mail. The Proof of Service indicates that JP Senior Homes, LLC, Kuniko Sigrist, Christopher Sigrist, and Brian Schott were served by mail on 10-12-2022 with “Notice of Opposition to Claim of Exemption (Enforcement of Judgment); Plaintiffs’ Memorandum of Points and Authorities in support, Declaration of Paul M. Yi, Order Determining Claim of Exemption, POS.”

Here, Judgment Creditors requested the instant Claim of Exemption hearing to challenge a levy from Wells Fargo Bank filed on 08-16-2022 on Defendant and Judgment Debtor, Kuniko Sigrist’s account. (WFB Levy) (See Declaration of Paul M. Yi (Yi Declaration) [ROA 68], Exhibit C.) Exhibit C to the Yi Declaration provides:

Notice of Levy on Social Security Account

Notice mailed on: 9/07/22 Notice mailed from: Newport Beach, CA

According to the attached notice from the financial institution, the account on which you levied has Social Security payments directly deposited.

1. Obtain copies of Notice of Opposition to Claim of Exemption (Enforcement of Judgment) and Notice of Hearing on Claim of Exemption from the court and obtain a court date from the court.

2. File with the court the original completed Notice of Opposition to Claim of Exemption (Enforcement of Judgment) and the original completed Notice of Hearing on Claim of Exemption within 10 days from the date of mailing shown above.

3. File with the Sheriff's Office a completed copy of the Notice of Opposition to Claim of Exemption (Enforcement of Judgment) and a completed copy of the Notice of Hearing on Claim of Exemption within 10 days of the mailing date shown above.

4. If the notices are not received by this office with the time allowed, the levy and any property held will be released in accordance with 704.080 CCP. 5. Have a completed copy of each notice served personally or by mail on the debtor(s) at least 10 days before the hearing date. The person who makes the service must complete and sign the proof of service on the back of the original Notice of Hearing on Claim of Exemption.

ATTACHMENT for

Social security funds and third party

[x] WFB is currently holding $2058.60 above the mandatory Social Security exemption. Note: In order to remit the SS funds above exemption, a Notice to Comply with a court order is required.

THIS LEVY REACHES ONE (OR MORE) DEPOSIT ACCOUNT(S) IN THE NAME OF A PERSON(S) OTHER THAN THE JUDGMENT DEBTOR (ALONE OR TOGETHER WITH THE JUDGMENT DEBTOR. PURSUANT TO CA CCP § 700.160 WELLS FARGO BANK, N.A. WILL HOLD THE FUNDS LEVIED UPON UNTIL NOTIFIED WITH THE APPROPRIATE DOCUMENTATION BY THE LEVYING OFFICER TO FORWARD THE FUNDS.

THIS LEVY REACHES AN ACCOUNT IN WHICH PAYMENTS AUTHORIZED BY THE SOCIAL SECURITY ADMINSTRATION ARE DIRECTLY DEPOSITED BY THE U.S. GOVERNMENT, PURSUANT OF CALIF. CCP SECTION 704.080 WELLS FARGO BANK, NA. WILL NOT PA Y THE BALANCE OF THE DEPOSIT ACCOUNT THAT EXCEEDS THE APPLICABLE AUTOMATIC EXEMPTION UNTIL NOTIFIED TO DO SO WITH APPROPRIATE DOCUMENTS BY THE LEVYING OFFICER.

Code of Civil Procedure section 704.080, subdivision (b) provides in pertinent part: A deposit account is exempt without making a claim in the following amount… [¶] (2) Two thousand four hundred twenty-five dollars ($2,425) where one depositor is the designated payee of directly deposited social security payments.” Code of Civil Procedure section 704.080(c) states: “he amount of a deposit account that exceeds the exemption provided in subdivision (b) is exempt to the extent that it consists of payments of public benefits or social security benefits.”

Further, Code of Civil Procedure section 704.080, subdivision (e)(4) states: “At a hearing under this subdivision, the judgment debtor has the burden of proving that the excess amount is exempt.” Additionally, “At the conclusion of the hearing, the court by order shall determine whether or not the amount of the deposit account is exempt pursuant to subdivision (c) in whole or in part and shall make an appropriate order for its prompt disposition. No findings are required in a proceeding under this subdivision.” Code Civ. Proc. § 704.080 (e)(5).

Judgment Creditors request that $2,058.60 currently being held by WFB be released because this is in excess of the social security exemption in Code of Civil Procedure section 704.080. Judgment Debtors have not submitted a response to Judgment Creditors’ Opposition to date.

Pursuant to Code of Civil Procedure section 704.080(e)(4), the Court finds that Judgment Debtors have failed to meet their burden of demonstrating that the $2,058.60 amount at issue is exempt. Therefore, the Court GRANTS Judgment Creditors’ Claim of Exemption, filed 09-16-2022 under ROA No. 70. The Court finds the funds subject to the WFB Levy NOT EXEMPT.

Moving Parties/Judgment Creditors are to give notice.