Judge: Michael Shultz, Case: 20CMCP00132, Date: 2023-08-10 Tentative Ruling

INSTRUCTIONS: If the parties wish to submit on the tentative ruling and avoid a court appearance on the matter, the moving party must:

1. Contact the opposing party and all other parties who have appeared in the action and confirm that each will submit on the tentative ruling.

2. No later than 4:00 p.m. on the court day before the hearing, call the Courtroom (310-761-4302) advising that all parties will submit on the tentative ruling and waive hearing; and

3. Serve notice of the Court's ruling on all parties entitled to receive service.

If this procedure is followed, when the case is called the Court will enter its ruling on the motion in accordance with its tentative ruling. If any party declines to submit on the tentative ruling, then no telephone call is necessary, and all parties should appear at the hearing. If there is neither a telephone call nor an appearance, then the matter may either be taken off calendar or ruled on. 

TENTATIVE RULINGS -- http://www.lacourt.org/tentativeRulingNet/ui/main.aspx?casetype=civil




Case Number: 20CMCP00132    Hearing Date: August 10, 2023    Dept: A

20CMCP00132 National Default Servicing v. All Claimants to Surplus Funds

Thursday, August 10, 2023 at 8:30 a.m.

 

[TENTATIVE] ORDER CONTINUING THE HEARING ON MOTION OF CLAIMANTS FOR DISBURSEMENT OF SURPLUS FUNDS

 

      

Petitioner, National Default Servicing, commenced this action on November 19, 2020, with a petition to distribute surplus funds of $30,371.48 remaining after a foreclosure sale and after deducting expenses attendant to the sale. Petitioner identified all parties with a recorded interest as Edelmira Mezquita (“Mezquita”), Felner W. Quezada, and Carime Quezada.  Petitioner received one claim to the proceeds from Greenday Finance I, LLC whose junior lien was paid from the sale proceeds.  Petitioner could not determine the priority of claims after receiving no contact from the remaining joint tenants despite efforts to contact them. (Petition, .pdf p. 134). Petitioner determined that Edelmira Mezquita passed away on October 31. 2017 (Petition, .pdf p. 136.)

Petitioner conducted a trustee’s sale on the property known as 1425 East 110th Street, Los Angeles, CA 90059. The subject property sold for $366,000, of which $330,549.57 was disbursed to the foreclosing creditor. On December 11, 2020, the Hon. Maurice A. Leiter, confirmed receipt of Petitioner’s deposit of $26,888.39 representing the surplus funds available for distribution. The Court continued the hearing on multiple occasions to permit any claimant to file a claim with the Court.

On July 27, 2023, Felner Quezada and Carime Quezada (“Claimants”), filed their request for disbursement of the surplus funds. The Hon. Kristin S. Escalante previously identified Claimants as the only trustors who have a vested interest in the surplus funds. (Motion, Ex. 1, .pdf. p. 11.)  

The order of priority for distribution of the proceeds is established by statute:

1.      Costs and expenses incurred from the sale, including the trustee’s fees and attorney’s fees.

2.      Obligations secured by the deed of trust or mortgage.

3.      Outstanding balance of obligations secured by junior liens or encumbrances in the order of their priority.

4.      Finally, to the trustor or the trustor's successor in interest. In the event the property is sold or transferred to another, to the vested owner of record at the time of the trustee's sale. (Civ. Code, § 2924k.)

 

Joint tenants are entitled to the whole of the property on the death of the others. (Prob. Code, § 223.) Claimants submit a copy of a grant deed recorded on October 25, 2017, wherein Edelmira Mezquita transferred ownership of the real property to Edelmira Mezquita, Felner Walberto Quezada, and Carime Quezada all as joint tenants. (Motion, Ex. 4, .pdf p. 19; see also Petition filed 11/19/20, .pdf p. 76.) Claimant, Felner Quezada, declares that his mother, Edelmira Mezquita, died on October 31, 2017. (Felner Quezada decl., ¶2.)

The public record does not establish the fact of Mezquita’s death. The fact of death is established by recording an affidavit of death by a person with knowledge and including a certified death certificate pursuant to Health & Saf. Code, section 103526 or by recording a certified copy of a court order that determines the fact of death. (Prob. Code, § 210.) A document establishing the fact death is prima facie evidence of the death of that person. (Prob. Code, § 212.)

As Claimants have not established that they recorded the documents required by Probate Code § 210 to establish Mezquita’s death or submitted a certified copy of the death certificate to this Court to enable it to determine that fact, the hearing is continued to October 13,  at 8:30 a.m. in Department A of the Compton courthouse. Claimants can submit a certified copy of the death certificate 10 days prior to the hearing.