Judge: Stephen P. Pfahler, Case: 22CHCP00333, Date: 2022-12-07 Tentative Ruling
Case Number: 22CHCP00333 Hearing Date: December 7, 2022 Dept: F49
Dept.
F-49
Date:
12-7-22
Case
#22CHCP00333
DISBURSE SURPLUS FUNDS
CLAIMANT:
Latara Enterprise, Inc., et al.
RESPONDENT:
N/A
RELIEF
REQUESTED
Disbursement
of Surplus Funds
SUMMARY
OF ACTION
A
trustee sale of 13343 Branford St., Arleta, occurred on February 2, 2022. The
sale yielded a purchase price of $621,000. The sale yielded an equitable gain
of $188,806.64. Following payment to the foreclosing creditor, and fees, a
surplus of $185,326.59 remains.
On
September 22, 2021, Quality Loan Service filed a petition for the deposit of
funds. On October 3, 2022, the court signed the order for the deposit of funds.
Notice of the hearing for claims of surplus funds was served the same day by
the clerk on both the former owner and all identified creditors.
RULING: Granted.
Petitioner has not filed any proof of deposit of the
funds with the court.
Two
claims were timely filed: One from the County of Los Angeles Child Support
Services Department seeking $3,012.50 in unpaid child support rendered into a
judgment dated November 1, 2021; and the other from Latara Enterprise, Inc.
seeking collection on a $753,744.45 judgment, entered on March 24, 2021
(20STCV17722), and recorded on June 3, 2021.
The
plain language of Civil Code section 2924k provides for the order of
distribution for the remaining $185,326.59 balance.
a) The trustee, or the
clerk of the court upon order to the clerk pursuant to subdivision (d) of
Section 2924j, shall distribute the proceeds, or a portion of the proceeds, as
the case may be, of the trustee's sale conducted pursuant to Section 2924h in
the following order of priority:
(1) To the costs and
expenses of exercising the power of sale and of sale, including the payment of
the trustee's fees and attorney's fees permitted pursuant to subdivision (b) of
Section 2924d and subdivision (b) of this section.
(2) To the payment of
the obligations secured by the deed of trust or mortgage which is the subject
of the trustee's sale.
(3) To satisfy the
outstanding balance of obligations secured by any junior liens or encumbrances
in the order of their priority.
(4) 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
The
underlying judgment in Latara Enterprise,
Inc. v. Tadevosyan, et al. (20STCV17722) arises from a contract claim and
otherwise maintains no underlying real property interest, such as a junior
lien. Neither party presents authority regarding the competing interests, and
the court found no specific authority for the assignment priority between the
competing interests. Nevertheless, notice of any judgment requires proof of
recording of the abstract of judgment. (Code Civ. Proc., § 697.320.) The claim from County of Los Angeles
shows no proof of recording of the abstract of judgment. (See Integrated Lender Services, Inc. v. County of Los Angeles (2018)
22 Cal.App.5th 867, 878.)
The court therefore
finds the Latara Enterprise recorded lien complies with the requirements for
recording before the trustee sale, and entitles it to all proceeds. (Civ. Code,
§ 2924k,
subd (a)(3).)
Disbursement
to occur only after proof of deposit of funds with the court by Petitioner.
Petitioner to give notice.