Judge: Teresa A. Beaudet, Case: 20STCV18014, Date: 2024-10-17 Tentative Ruling

Case Number: 20STCV18014    Hearing Date: October 17, 2024    Dept: 50

Superior Court of California

County of Los Angeles

Department 50

Background

On May 11, 2020, Plaintiff Wesco Insurance Company (“Plaintiff”) filed this action against Defendant Native Creations Inc. and dba Creative Innovations (“Defendant”). The Complaint alleges six causes of action for breach of contract.

On May 5, 2023, a “Judgment After Hearing on Motion for Judgment in Accordance with Written Settlement Agreement” was entered in this action. The Judgment provides, inter alia, as follows:

“IT IS HEREBY ORDERED, ADJUDGED AND DECREED that Plaintiff Wesco Insurance Company have judgment against Defendant Native Creations Inc. and dba Creative Innovations in the principal sum of $12,657.00, together with prejudgment interest of $3.46 per day from December 8, 2017 using the legal rate of 10% per annum; plus the principal sum of $17,733.00, together with prejudgment interest of $4.85 per day from October 30, 2017 using the legal rate of 10% per annum; plus the principal sum of $16,215.00, together with prejudgment interest of $4.44 per day from October 23, 2017 using the legal rate of 10% per annum; plus the principal sum of $13,824.00, together with prejudgment interest of $3.78 per day from November 1, 2018 using the legal rate of 10% per annum; plus the principal sum of $3,168.00, together with prejudgment interest of $0.86 per day from September 9, 2019 using the legal rate of 10% per annum; plus the principal sum of $1,710.00, together with prejudgment interest of $0.46 per day from August 16, 2019 using the legal rate of 10% per annum, plus costs of suit of $535.00, and $1,500.00 in attorney’s fees incurred in seeking judgment, for a total judgment of $76,140.59.”

Plaintiff now moves for an order assigning to Plaintiff the interest, if any, of Defendant in its rights to payment of money due or to become due from its activities as a contractor or generated through the use of California Contractors State License Board License No. 380415, to the extent necessary to satisfy the judgment entered in this action. The motion is unopposed.

Request for Judicial Notice

The Court grants Plaintiff’s request for judicial notice.

Discussion

Plaintiff states that it seeks an order “assigning to Plaintiff/Judgment Creditor Wesco Insurance Company the interest, if any, of Defendant/Judgment Debtor Native Creations Inc. and dba Creative Innovations in their rights to payment of money due or to become due, whether styled accounts receivable, general intangibles, payment intangibles, accounts, deposit accounts, royalties, fees, commissions, and other rights to money, from its activities as a contractor or generated through the use of California Contractors State License Board License No. 380415, to the extent necessary to satisfy the judgment entered in this action in full which, as of October 17, 2024, is $82,271.81…” (Mot. at pp. 1:27-2:5.)

Plaintiff cites to Code of Civil Procedure section 708.510, subdivision (a), which provides that “[e]xcept as otherwise provided by law, upon application of the judgment creditor on noticed motion, the court may order the judgment debtor to assign to the judgment creditor or to a receiver appointed pursuant to Article 7 (commencing with Section 708.610) all or part of a right to payment due or to become due, whether or not the right is conditioned on future developments, including but not limited to the following types of payments: (1) Wages due from the federal government that are not subject to withholding under an earnings withholding order. (2) Rents. (3) Commissions. (4) Royalties. (5) Payments due from a patent or copyright. (6) Insurance policy loan value.” Pursuant to Code of Civil Procedure section 708.510, subdivision (d), “[a] right to payment may be assigned pursuant to this article only to the extent necessary to satisfy the money judgment.”

In addition, pursuant to Code of Civil Procedure section 708.510, subdivision (c), “[s]ubject to subdivisions (d), (e), and (f), in determining whether to order an assignment or the amount of an assignment pursuant to subdivision (a), the court may take into consideration all relevant factors, including the following: (1) The reasonable requirements of a judgment debtor who is a natural person and of persons supported in whole or in part by the judgment debtor. (2) Payments the judgment debtor is required to make or that are deducted in satisfaction of other judgments and wage assignments, including earnings assignment orders for support. (3) The amount remaining due on the money judgment. (4) The amount being or to be received in satisfaction of the right to payment that may be assigned.”

Pursuant to Code of Civil Procedure section 708.510, subdivision (b)(1), “[t]he notice of the motion shall be served on the judgment debtor. Service shall be made personally or by mail.” Here, the proof of service attached to Plaintiff’s instant motion states that the moving papers were served on Defendant by mail on September 16, 2024.

As discussed, Plaintiff moves for an order assigning to Plaintiff the interest, if any, of Defendant in its rights to payment of money due or to become due “from its activities as a contractor or generated through the use of California Contractors State License Board License No. 380415, to the extent necessary to satisfy the judgment entered in this action in full which, as of October 17, 2024, is $82,271.81…” (Mot. at p. 2:3-5.) As set forth above, the May 5, 2023 Judgment in this action provides for a “total judgment of $76,140.59.” (May 5, 2023 Judgment at p. 2:16.)

In his declaration in support of the motion, Plaintiff’s counsel states that “[o]n July 11, 2023, a bank levy recovered $4,958.09 [credit against principal: $3,144.14; credit against interest: $1,813.95]. The daily rate at 10% per annum on $72,996.45 is $19.99 per day. 464 days have passed from July 11, 2023 through October 17, 2024. Post-judgment interest, as of October 17, 2024, is $9,275.36. The total sum now due and owing under the Judgment, as of October 17, 2024, is $82,271.81.” (Aires Decl., ¶ 3.)

As an initial matter, the Court notes that $76,140.59 (the total amount of the May 5, 2023 Judgment) minus $4,958.09 (the amount credited) equals $71,182.50. However, Plaintiff’s calculations of post-judgment interest are based on an amount of $72,996.45. (Aires Decl., ¶ 3.) It is unclear if Plaintiff also added interest to the $71,182.50 figure for the period of May 5, 2023 to July 11, 2023, as calculations are not provided as to any such interest. It appears that a further explanation from Plaintiff is necessary on this point.

In his supporting declaration, Plaintiff’s counsel also states that “Defendant/Judgment Debtor Native Creations Inc. and dba Creative Innovations is using CSLB License No. 380415, as evidenced by the abstract of the records of the CSLB pertaining to CSLB License No. 380415, a true and correct copy of which is attached hereto as Exhibit ‘B’.” (Aires Decl., ¶ 5, Ex. B.) Plaintiff’s counsel states that “[b]ased on my investigation, rights to payment of money due or to become due, whether styled accounts receivable, general intangibles, payment intangibles, accounts, deposit accounts, royalties, fees, commissions, and other rights to money, from its activities as a contractor or generated through the use of CSLB License No. 380415, exist in favor of Defendant/Judgment Debtor Native Creations Inc. and dba Creative Innovations.” (Aires Decl., ¶ 6.)

As set forth above, Code of Civil Procedure section 708.510, subdivision (a) provides in part that “upon application of the judgment creditor on noticed motion, the court may order the judgment debtor to assign to the judgment creditor…all or part of a right to payment due or to become due, whether or not the right is conditioned on future developments…” (Emphasis added.) “All or part of a right to payment due, or to become due, may be ordered assigned whether or not such right is conditioned upon future developments. [CCP § 708.510(a)].” (Ahart, Cal. Practice Guide: Enforcing Judgments and Debts (The Rutter Group 2023) ¶ 6:1423 [emphasis in original].)

Here, the Court finds that Plaintiff has provided adequate evidence of purported payments due or to become due to Defendant. However, as discussed, a further explanation appears to be necessary regarding Plaintiff’s calculation of $82,271.81 as the total sum due. (Aires Decl., ¶ 3.)

Conclusion

Based on the foregoing, the Court continues the hearing on Plaintiff’s motion to _______________, 2024 at 10:00 a.m. in Dept. 50. Plaintiff is to file and serve a declaration addressing the foregoing request for additional information by _______________, 2024, with a courtesy copy delivered to Dept. 50.

Plaintiff is ordered to provide notice of this ruling.  

DATED:  October 17, 2024                           ________________________________

Hon. Teresa A. Beaudet

Judge, Los Angeles Superior Court