Judge: Theodore R. Howard, Case: 15-822570, Date: 2023-05-25 Tentative Ruling
Before the Court at present are five motions, all filed by Judgment Creditor Cyrus Alimadadian (“Alimadadian”) as follows:
(1) the Motion for a Turnover Order in Aid of Execution against Judgment Debtor Musa Madain, filed on 10/20/22 (“Motion 1” below);
(2) the Motion For an Order to Charge the Interest of
Judgment Debtor Musa Madain in El Crillon, LLC, filed on 10/21/22 (“Motion 2” below);
(3) the Motion For an Order Compelling Judgment Debtor Musa Madain to Assign its Rights in its Accounts Receivable, filed on 10/21/22 (“Motion 3” below);
(4) the Motion For an Order Compelling Judgment Debtor The Grand Theater, Inc. to Assign its Rights in its Accounts Receivable, filed on 10/21/22 (“Motion 4” below); and
(5) the Motion For an Order Compelling Judgment Debtor The Grand Theater, Inc. to Serve Responses to the Post-Judgment Requests for Production of Documents, filed on 1/6/23 (“Motion 5” below).
Motions 1-4 were previously heard on 4/6/23, but continued for supplemental briefing. The Court has received and considered the supplemental submissions from both sides, and thus now rules as follows for each.
Motion 1 is GRANTED IN PART. The Motion requests a turnover order in aid of execution pursuant to C.C.P. § 699.040, as to certain shares and stocks belonging to Judgment Debtor Musa Madain (“Madain”), including all certificates of ownership and related documentary evidence of title for shares, stocks and ownership interest certificates for three entities: The Grand Theater Inc. (“Theater”), M3Live Bar & Grill, Inc. (“M3Live”) and El Crillon, LLC (“El Crillon”).
The Motion demonstrates that relief is permitted under C.C.P. § 699.040, as it identifies specific property sought to be levied upon by taking it into custody, and reasonable “need” is shown, as the debt remains unpaid and Madain has not shown that he can pay what is owed. The Motion thus appears well-taken.
Madain did not meaningfully attempt to dispute that this is so but argues that such an order should not issue because the shares in each are without value. Madain has now provided supporting evidence to show that Theater has substantial debt but has not shown that the interests in either entity are without value. He has also failed to adequately address the difference in value now attributed to Theater with what was stated in prior bankruptcy filings for M3. (ROA 453, Exs. 1, 2, 5.) Nor has he timely claimed any exemptions under C.C.P. § 703.030.
However, Madain’s supplementation points to Ho v. Hsieh (2010) 181 Cal.App.4th 337, 347 (although mis-cited therein) for the proposition that a transfer cannot be ordered for interests that cannot be used to satisfy the judgment. Alimadadian’s supplementation failed to respond thereto.
Although the interests at issue may have value, Alimadadian has not shown how or to what extent the turnover orders as requested here would result in any reduction in the judgment. The Court thus finds that Motion 1 should be GRANTED IN PART, to require only that the shares/stock at issue be lodged, either with the Orange County Superior Court or the Orange County Sheriff’s Department, until the Judgment is satisfied.
Motion 2 is GRANTED. Motion 2 seeks an order to charge the interests of Madain in El Crillon, under C.C.P. § 708.310 and Corp. Code §17705.03, until the judgment is satisfied. Madain argues that greater specificity is required, but has failed to show that sufficient information was provided in response to Alimadadian’s discovery efforts to permit same, and has failed to present any claims of exemption.
Alimadadian has shown that the sum now claimed on the Judgment, as of 5/9/23, is $442,894.32. (ROA 431, pp. 4-5, Ex. 1.) That the judgment was amended in 2022 to add Theater does not alter the calculations. However, $125,490 of that is for attorney’s fees recently claimed, where a Motion to Tax has been filed and remains pending. (ROA 433.) The sum clearly owed on the Judgment at present is therefore $317,404.32. The Motion is therefore GRANTED, to the extent necessary to satisfy the $317,404.32 portion of the judgment not presently in dispute per the pending Motion to Tax.
Motions 3 and 4 are GRANTED. For these Motions, Alimadadian seeks orders compelling Madain to assign all rights to accounts receivable owed from Theater, M3Live and El Crillon, LLC, and compelling Theater to assign all rights to accounts receivable for any event at “The Grand Theater,” pursuant to C.C.P. § 708.510, and restraining acts to interfere with such rights to payment.
Madain responds that greater specificity is required but has again failed to show that sufficient information was provided in response to Alimadadian’s discovery efforts to permit same and has failed to present any claims of exemption. The Motions are therefore GRANTED, to the extent necessary to satisfy the $317,404.32 portion of the judgment not presently in dispute per the pending Motion to Tax.
Motion 5 is GRANTED. C.C.P. § 708.030(a) permits a judgment creditor to serve requests for production (“RFPs”) at any time. The limitation stated in C.C.P. § 708.030(b) does not apply to the RFPs at issue, served on September 20, 2022. Subsequent service of the same RFPs does not nullify or waive the right to compel responses thereto. As Theater did not timely respond, it waived all objections thereto. (C.C.P. § 2031.300(a).) Theater is thus ordered to serve verified responses, without objection, that comply fully with the Code of Civil Procedure, within 15 days of written notice of this Court’s order. The order may be served on Attorney Thomas S. Gruenbeck by mail, email, or overnight service. Personal service is not required. Plaintiff is awarded $2,520 in sanctions against Theater, as Theater did not have substantial justification for opposing this Motion.
Counsel for Alimadadian is to give notice of these rulings and is to submit proposed orders which comport with these rulings in accordance with C.R.C. 3.1312.