Judge: Stephen I. Goorvitch, Case: 23STCP00236, Date: 2023-03-24 Tentative Ruling
Case Number: 23STCP00236 Hearing Date: March 24, 2023 Dept: 39
Clear Recon Corp
v. All Claimants
Case No.
23STCP00236
Petition Regarding
Unresolved Claims
Petitioner Clear Recon Corp
(“Petitioner”) is the trustee under a deed of trust for real property at 12330
Pasadena Street, Whittier, California 90601 (the “Subject Property”). On April 7, 2022, Petitioner sold the
property at a trustee’s sale for $551,000.
After Petitioner satisfied the indebtedness, there was a surplus of
$160,543.22. Petitioner then filed a petition
to deposit these proceeds (minus fees and expenses) with the Court to permit any
claimants to request distributions.
If, after due diligence, the
trustee is unable to determine the priority of the written claims received or
if the trustee determines that there is a conflict between potential claimants,
the trustee may file a declaration of the unresolved claims and deposit the
undistributed proceeds with the superior court of the county where the sale
occurred. (Civ. Code, § 2924j, subd. (c);
see CTC Real Estate Services v. Lepe (2006) 140 Cal.App.4th 856, 861.) The trustee must file a declaration that
states: (a) the date of the trustee's sale; (b) the property description; (c)
the names and addresses of all persons who were sent notice under Civil Code
section 2924j, subdivision (a); (d) that the trustee exercised due diligence
under Civil Code section 2924j, subdivision (b); (e) that the trustee provided
written notice as required by Civil Code section 2924j, subdivisions (a) and
(d); and (f) the amount of the sale proceeds deposited by the trustee with the
superior court. (Civ. Code, § 2924j,
subd. (c).)
Before depositing the funds with
the clerk of the court, the trustee must send written notice by first-class
mail, postage prepaid, to all persons described in C.C. 2924j(a) informing them
that the trustee intends to deposit the funds “and that a claim for the funds must
be filed with the court within 30 days from the date of the notice, providing
the address of the court in which the funds were deposited, and a telephone
number for obtaining further information.” (Civ. Code, § 2924j(d).) The trustee
must file proof of service of this notice and also submit a copy of the
trustee's sales guarantee and any information relevant to the identity,
location, and priority of the potential claimants. (Civ. Code, § 2924j(c).)
The deposit may be either for the
total proceeds of the trustee's sale if a conflict exists with respect to the
total proceeds, or that portion that cannot be distributed after due diligence,
less any fees charged by the clerk. Once that portion of the sale proceeds that
cannot be distributed by due diligence is deposited with the court, the trustee
is discharged of further responsibility for disbursement of the sale proceeds.
(Civ. Code, § 2924j(c).)
Within 90 days after deposit with
the clerk, the court must consider claims filed at least 15 days before the
scheduled hearing date, and the clerk must “serve written notice of the hearing
by first-class mail on all claimants identified in the trustee's declaration at
the addresses specified.” The Court then
distributes the deposited funds to the claimants entitled thereto. (Civ. Code,
§ 2924j(d).) The superior court clerk
may charge a reasonable fee, and the clerk must deposit the amount with the
county treasurer or in a bank account established for moneys held in trust,
subject to order of the superior court on the application of any interested
party. (Civ. Code, § 2924j(c).)
Petitioner
appears to have complied with these requirements and seeks to deduct the following
fees and expenses: (1) The sum of $3,102.92 for the trustee’s fees and expenses;
and (2) The sum of $435 as a filing fee for this petition. The Court approves these fees and
expenses. The Court grants the petition
and orders Petitioner to deposit $157,005.30 with the clerk of the court.
The Court
sets a hearing at which it will determine the distribution of these
proceeds. The hearing shall be held on
May 15, 2023, at 8:30 a.m. at the following location:
Stanley Mosk Courthouse
111 North Hill Street
Department #39 (Goorvitch, J.)
Los Angeles, California 90012
The Court shall consider any claim
filed on or before April 25, 2023. At present,
the Court has received one claim.
Specifically, Salvador Valenzuela requests that the entire amount be
released to his counsel. The Court provides
notice that absent good cause, e.g., another claim, etc., the Court intends to distribute
these funds to Salvador Valenzuela’s attorney.
The
Court orders Salvador Valenzuela’s counsel to provide a notarized authorization
from his client, which makes clear that Mr. Valenzuela authorizes the court’s
clerk to release the funds to his counsel.
This authorization shall be filed on or before May 1, 2023.
Petitioner’s
counsel shall provide notice and file proof of such with the Court.