Judge: Robert B. Broadbelt, Case: 21STCV34639, Date: 2022-12-08 Tentative Ruling

Case Number: 21STCV34639    Hearing Date: December 8, 2022    Dept: 53

Superior Court of California

County of Los Angeles – Central District

Department 53

 

 

909 development group, l.p. , et al.;

 

Plaintiffs,

 

 

vs.

 

 

bullseye capital real property opportunity fund i, llc , et al.;

 

Defendants.

Case No.:

21STCV34639

 

 

Hearing Date:

December 8, 2022

 

 

Time:

10:00 a.m.

 

 

 

[Tentative] Order RE:

 

 

MOTION FOR ORDER TO DEPOSIT BOND FUNDS with court

 

 

MOVING PARTY:                 Plaintiff in Intervention SureTec Insurance Company

 

RESPONDING PARTY:       Unopposed

Motion for Order to Deposit Bond Funds With Court

The court considered the moving papers filed in connection with this motion.  No opposition or reply papers were filed.

MOTION FOR ORDER TO DEPOSIT BOND FUNDS

Plaintiffs 909 Development Group, L.P., and Neufeld Marks, APC filed their Complaint in Interpleader in this action on September 20, 2021, against defendants Bullseye Capital Real Property Opportunity Fund I, LLC; Joel Block; Growth-Logic, Inc., dba Bullseye Capital; Thomas Pierce; and Randall McCathren.

On September 22, 2021, plaintiff Neufeld Marks, APC, filed its undertaking for interpleader pursuant to Code of Civil Procedure section 386 in the amount of $325,640.43.

On January 31, 2022, SureTec Insurance Company (“SureTec”) filed a Complaint-in-Intervention for Interpleader in this action.

SureTec now moves the court for an order (1) allowing SureTec to deposit the penal sum of the bond ($325,640.43 less costs and attorney’s fees) with the court; (2) exonerating SureTec from all further liability and discharging SureTec from any liability arising from Interpleader Bond No. 3491059 (the “Bond”); (3) retaining and prohibiting prosecution of any further legal action against the Bond; (4) dismissing SureTec from this action; and (5) granting SureTec’s request for reasonable attorney’s fees and costs in the amount of $6,703.50.

“Where the only relief sought against one of the defendants is the payment of a stated amount of money alleged to be wrongfully withheld, such defendant may, upon affidavit that he is a mere stakeholder with no interest in the amount or any portion thereof and that conflicting demands have been made upon him for the amount by parties to the action, upon notice to such parties, apply to the court for an order discharging him from liability and dismissing him from the action on his depositing with the clerk of the court the amount in dispute and the court may, in its discretion, make such order.”  (Code Civ. Proc., § 386.5.) 

The court grants SureTec’s motion for order to deposit bond funds with court.

First, SureTec submits the declaration of its counsel, who states that defendants Bullseye Capital Real Property Opportunity Fund I, LLC (“Bullseye”), Joel Block, Growth-Logic, Inc., dba Bullseye Capital, Thomas Pierce, and Randal McCathren have made competing claims against the Bond.  (Martinez-Genzon Decl., ¶ 3.)  Second, SureTec submits the declaration of its Vice-President, Court/Probate Bond Attorney, who states that (1) on September 22, 2021, plaintiff Neufeld Marks, APC executed an application for a civil court bond and indemnification agreement for an interpleader bond from SureTec, and that SureTec thereafter issued the Bond in the amount of $325,640.43; (2) on January 6, 2022, Bullseye issued a notice of levy, memorandum of garnishee and writ of execution in the amount of $329,389.03, such that (3) SureTec has received competing claims against the Bond that exceed its limit of $325,640.43, since SureTec is obligated to all other named defendants, and not solely Bullseye; and (4) SureTec has no interest in the aforementioned funds except as to any court-awarded attorney’s fees and costs.  (Ortiz Decl., ¶¶ 3, 5-6, 9.)  No opposition has been filed by any party disputing the facts set forth above.

SureTec has therefore established that (1) it is a mere stakeholder with no interest in the amount of the funds, and (2) conflicting demands have been made upon it for the amount of the Bond by parties to this action.  (Code Civ. Proc., § 386.5.)

The court therefore grants SureTec’s request to discharge it from liability and dismiss it from this action on its depositing with the clerk of court the amount in dispute, less the amount of attorney’s fees and costs.  (Code Civ. Proc., § 385.6.)

The court grants SureTec’s request that the court order that all parties to this action are restrained from instituting or further prosecuting any other proceeding in any court in this state affecting the rights and obligations as between the parties to the interpleader until further order of the court.  (Code Civ. Proc., § 386, subd. (f).)

The court finds that SureTec’s request for attorney’s fees and costs in the total amount of $6,703.50 (consisting of $6,121.60 in attorney’s fees + $581.90 in costs) is reasonable, and therefore grants SureTec’s request for an award of attorney’s fees and costs.  (Code Civ. Proc., § 386.6, subd. (a); Martinez-Genzon Decl., ¶¶ 4-5.) 

ORDER

The court grants plaintiff-in-intervention SureTec Insurance Company’s motion for order to deposit bond funds with court.

The court will sign and file the proposed order lodged by plaintiff-in-intervention SureTec Insurance Company on April 27, 2022.

The court orders plaintiff-in-intervention SureTec Insurance Company to give notice of this order.

 

IT IS SO ORDERED.

 

DATED:  December 8, 2022

 

_____________________________

Robert B. Broadbelt III

Judge of the Superior Court