Judge: Michael Shultz, Case: 23CMCP00042, Date: 2023-08-15 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: 23CMCP00042    Hearing Date: August 15, 2023    Dept: A

23CMCP00042 Quality Loan Service, Corp. v. All Claimants to Surplus Funds

Tuesday, August 15, 2023, at 8:30 a.m.

 

[TENTATIVE] ORDER DENYING CLAIM FOR SURPLUS FUNDS  

 

     

Petitioner commenced this action on March 9, 2023, with a petition to distribute surplus funds of $272,849.74 remaining after a foreclosure sale. The Court granted Petitioner’s motion on May 4, 2023, to deposit the funds with the Court. Petitioner served notice of the Court’s ruling on all parties with a recorded interest.

Claimant, Brandi Gross, requests distribution of the deposited funds based on the contention that she was the record owner of the property that was sold.

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.)

Claimant has not submitted any proof that Claimant was the owner of record at the time of the foreclosure sale. The petition filed in this action on March 9, 2023, by Quality Loan Service, Inc. reflects that the Trustor on the Deed of Trust encumbering the property was Carolyn M. Finnerson, who died on August 22, 2017 (Petition, ¶ 3, Ex. C.)  Before her death, Decedent prepared a will and living trust granting the real property at issue to the Carolyn M. Finnerson Living Trust. (Petition .pdf p. 77). Claimant is identified as one of two beneficiaries. (Petition, .pdf p. 58.)

The court’s record reflects that a probate action has been commenced bearing Case No. 23STPB01929 Carolyn Marie Finnerson, Decedent. Accordingly, the probate court has jurisdiction over the distribution of the decedent’s estate.

Claimant is directed to file a Notice of Related Cases with Department 1 at the Stanley Mosk Courthouse to determine whether this matter is related to the probate action. (CA R LOS ANGELES SUPER CT Rule 3.3 (f)(2).)

 A copy of that notice shall be filed in both this department, as well as in Department 9 of the Stanley Mosk Courthouse where the probate action was previously pending.

Based on the foregoing, the claim is DENIED. The Court sets an Order to Show Cause: Re Related Case for October 13, 2023, at 8:30 a.m. in Department A of the Compton courthouse.