Judge: Shirley K. Watkins, Case: 21VECV00056, Date: 2023-02-21 Tentative Ruling

If ALL parties submit on the tentative, then no appearance is necessary unless some other matter (i.e., Case Management Conference) is on calendar. It is not necessary to call the court to request oral argument. Oral argument is permitted on all tentative rulings.

Case Number: 21VECV00056    Hearing Date: February 21, 2023    Dept: T

            [TENTATIVE] ORDER:  Defendant Alice Minassian’s Demurrer to the Complaint is SUSTAINED WITHOUT LEAVE TO AMEND. Defendant Alice Minassian’s request for judicial notice and supplemental request for judicial notice is GRANTED EXCEPT AS TO ANY HEARSAY.

Introduction: Defendant Alice Minassian (Defendant) demurred to Plaintiff Armen Minassian (Plaintiff) Complaint.

            Discussion:  Defendant’s request for judicial notice and supplemental request for judicial notice is GRANTED but only as to the existence of the documents and not as to any hearsay or facts in dispute.

Defendant argued that Plaintiff lacks standing to prosecute this action because Plaintiff filed a Chapter 7 Bankruptcy Petition after the instant action was filed.  All causes of action belonging to a bankrupt at the time of filing a Chapter 7 bankruptcy petition become part of the bankruptcy estate.  The trustee in bankruptcy is the real party in interest as to such causes of action.  (M & M Foods, Inc. v. Pacific American Fish Co., Inc. (2011) 196 Cal.App.4th 554, 564.)  A debtor's prepetition personal injury cause of action is included in the bankruptcy estate.  (In re Cottrell (6th Cir. 1989) 876 F.2d 540, 542-543.)  Plaintiff did not dispute that a Chapter 7 Bankruptcy Petition was filed after the instant action was filed.  Plaintiff did not dispute the authorities submitted by Defendant.  Defendant’s argument is seen to be persuasive. 

In opposition, Plaintiff cited to California statute to argue that personal injury actions are exempt.  (Code Civ. Proc. sec. 170.140(a).)  However, the exemption statute only makes the asset unreachable by creditors.  The statute does not state that a personal injury action is excluded from the bankruptcy estate.  Assets eligible for exemption constitute property of the estate.  (In re Hernandez (Bankr. 9th Cir. 2012) 483 B.R. 713, 724-725; In re Zavala (Bankr. E.D. Cal. 2011) 444 B.R. 181, 189; In re Bronner (Bankr. 9th Cir. 1992) 135 B.R. 645, 648-649.)  Defendant’s contention as to Plaintiff’s lack of standing is merited.  On the pleading defect of proper standing, the Demurrer is SUSTAINED WITHOUT LEAVE TO AMEND.

            IT IS SO ORDERED, CLERK TO GIVE NOTICE.