Judge: Teresa A. Beaudet, Case: 20STCV19540, Date: 2024-05-22 Tentative Ruling

Case Number: 20STCV19540    Hearing Date: May 22, 2024    Dept: 50

Superior Court of California

County of Los Angeles

Department 50

Background

On May 21, 2020, Plaintiff Security National Insurance Company (“Plaintiff”) filed this action against Defendant Valley Collision Incorporated (“Defendant”). The Complaint alleges causes of action for (1) breach of contract and (2) breach of contract.

On January 8, 2021, a Clerk’s default judgment was entered in this matter for Plaintiff and against Defendant in the total amount of $142,955.45.

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, to the extent necessary to satisfy the judgment entered in this action. The motion is unopposed.

Discussion

Plaintiff states that it seeks an order “assigning to Plaintiff/Judgment Creditor Security National Insurance Company the interest, if any, of Defendant/Judgment Debtor Valley Collision Incorporated in its rights to payment of money due or to become due, including, without limitation, accounts receivable, general intangibles, accounts, deposit accounts, royalties, fees, commissions, and other rights to money, from whatever source, including, without limitation, rights to the payment of money due from its activities as an automobile repair dealer and from any business entity or person with which they are affiliated, including, without limitation, ‘Valley Collision III’ , ‘GEICO’, ‘Farmers Insurance Group’, ‘Mercury Insurance Group’ , ‘State Farm Insurance’, ‘Progressive Insurance’, and/or from or through any merchant bank or other processor of credit card payments under the name ‘Visa’, ‘Mastercard’, ‘American Express’, ‘Discover’, ‘Apple Pay’, ‘Square Inc.’, ‘Chase Paymentech Solutions LLC’ and/or ‘PayPal’, or otherwise, as well as generated through the use of any license issued by a governmental agency, including, without limitation, California Bureau of Automotive Repair, Automobile Repair Dealer License No. 293419, and any other business operated out of 645 E San Bernardino Rd, Covina, CA 91723, to the extent necessary to satisfy the judgment entered in this action in full which, as of May 22, 2024, is $190,661.85…” (Mot. at pp. 1:27-2:13.)

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 the instant motion indicates that the motion was served on Defendant by mail on September 13, 2023.

As set forth above, on January 8, 2021, a Clerk’s default judgment was entered in this matter for Plaintiff and against Defendant in the total amount of $142,955.45. Plaintiff’s counsel states that “[n]o effort has been made to satisfy the Judgment.” (Aires Decl., ¶ 4.)

In support of the motion, Plaintiff submits the Declaration of R. Brent Walton, who states that he provides “litigation support and analysis services” to Plaintiff’s counsel. (Walton Decl., ¶ 2.) Mr. Walton states, inter alia, that he “conducted a search of the internet through www.google.com for ‘Valley Collision’” and asserts that his “investigation efforts reveal that rights to payment of money due or to become due, including, without limitation, accounts receivable, general intangibles, accounts, deposit accounts, royalties, fees, commissions, and other rights to money, from whatever source, including, without limitation, rights to the payment of money due from its activities as an automobile repair dealer and from any business entity or person with which they are affiliated, including, without limitation, ‘Valley Collision III’ , ‘GEICO’, ‘Farmers Insurance Group’, ‘Mercury Insurance Group’ , ‘State Farm Insurance’ , ‘Progressive Insurance’, and/or from or through any merchant bank or other processor of credit card payments under the name ‘Visa’, ‘Mastercard’ , ‘American Express’, ‘Discover’, ‘Apple Pay’, ‘Square Inc.’, ‘Chase Paymentech Solutions LLC’ and/or ‘PayPal’, or otherwise, as well as generated through the use of any license issued by a governmental agency, including, without limitation, California Bureau of Automotive Repair, Automobile Repair Dealer License No. 293419, and any other business operated out of 645 E San Bernardino Rd, Covina, CA 91723, exist in favor of Defendant/Judgment Debtor Valley Collision Incorporated.” (Walton Decl., ¶ 5.)

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.

Conclusion

Based on the foregoing, Plaintiff’s motion is denied without prejudice.

Plaintiff is ordered to give notice of this Order.  

DATED:  May 22, 2024                                 ________________________________

Hon. Teresa A. Beaudet

Judge, Los Angeles Superior Court