Judge: Wesley L. Hsu, Case: 22PSCV01789, Date: 2023-03-28 Tentative Ruling

Case Number: 22PSCV01789    Hearing Date: March 28, 2023    Dept: L

Plaintiff VW Credit, Inc.’s Application for Writ of Possession After Hearing is GRANTED,

with no bond.

 

Background   

 

Plaintiff VW Credit, Inc. (“Plaintiff”) alleges as follows: Plaintiff was dba Audi Financial Services. On May 30, 2022, Defendant Yinhai Ren (“Defendant”) entered into a Retail Installment Sales Contract (“Agreement”) with Plaintiff’s assignor, Audi Ontario (“Assignor”), wherein Assignor agreed to lease a new 2022 Audi e-tron Sportback, VIN #WA12AAGE0NB030716 (“subject vehicle”) to Defendant in exchange for Defendant’s payments. On July 14, 2022, Defendant failed to make the monthly payment then due and owing. Defendant has failed to become current in the payments under the Agreement.

 

On November 14, 2022, Plaintiff filed a complaint, asserting causes of action against Defendant and Does 1-100 for:

 

1.      Claim & Delivery

2.      Conversion

 

On January 24, 2023, Defendant’s default was entered.

 

A Case Management Conference is set for March 28, 2023.

 

Discussion

 

Plaintiff applies for a writ of possession after hearing pursuant to Code of Civil Procedure

sections 512.010 et seq.  Plaintiff seeks to recover the Audi e-tron Sportback, VIN

#WA12AAGE0NB030716 now in the possession of Defendant.

 

“Claim and delivery is a remedy by which a party with a superior right to a specific item of personal property (created, most commonly, by a contractual lien) may recover possession of that specific property before judgment. (See current § 511.010 et seq. [Claim and Delivery of Personal Property].)” (Waffer Internat. Corp. v. Khorsandi (1999) 69 Cal.App.4th 1261, 1271.)

 

Procedural Considerations: No writ of possession may issue, except after a hearing on a noticed motion (Code Civ. Proc., § 512.020, subd. (a)) or by ex parte application satisfying the conditions of section 512.020, subdivision (b).  Prior to the section 512.020 hearing, the defendant must be served with all of the following: (a) A copy of the summons and complaint; (b) A Notice of Application and Hearing; (c) A copy of the application and any affidavit in support thereof.  (Code Civ. Proc., § 512.030, subd. (a).) “If the defendant has not appeared in the action, and a writ, notice, order, or other paper is required to be personally served on the defendant under this title, service shall be made in the same manner as a summons is served under Chapter 4 (commencing with Section 413.10) of Title 5.” (Code Civ. Proc., § 512.030, subd. (b).) 

 

The "Notice of Application and Hearing" must inform the defendant of all of the following: (a) A hearing will be held at a place and at a time, to be specified in the notice, on plaintiff's application for a writ of possession; (b) The writ will be issued if the court finds that the plaintiff's claim is probably (not actually) valid and the other requirements for issuing the writ are established; (c) If the defendant desires to oppose the issuance of the writ, he must file with the court either an affidavit providing evidence sufficient to defeat the plaintiff's right to issuance of the writ or an undertaking to stay the delivery of the property in accordance with section 515.020; (d) The notice must contain the following statement: “If you believe the plaintiff may not be entitled to possession of the property claimed, you may wish to seek the advice of an attorney. Such attorney should be consulted promptly so that he may assist you before the time set for the hearing.”  (Code Civ. Proc., § 512.040.)

 

On January 3, 2023, Plaintiff filed a proof of service, which reflected that Defendant was substitute served on December 12, 2022 with, inter alia, the summons, complaint, Notice of Application for Writ of Possession and Hearing, Application for Writ of Possession, Memorandum of Points and Authorities, Declaration in Support of Application for Writ of Possession and [Proposed] Order for Writ of Possession.

 

The court determines that adequate notice was provided to Defendant.

 

MERITS: As for the merits of the application, the court must make its determinations upon the basis of the pleadings and other papers in the record; but, upon good cause shown, the court may receive and consider additional evidence and authority produced at the hearing or may continue the hearing for the production of such additional evidence, oral or documentary, or the filing of other affidavits or points and authorities. (Code Civ. Proc., § 512.050.) The court must issue writ of possession if the plaintiff establishes “the probable validity of his claim” to possession of the property and the undertaking requirements of section 515.010 are satisfied. (Code Civ. Proc., § 512.060; RCA Service Co. v. Superior Court (1982) 137 Cal.App.3d 1, 3.) “Probable validity” exists where it is more likely than not that the plaintiff will obtain a judgment against the defendant on that claim. (Code Civ. Proc., § 511.090; RCA Service Co., supra, 137 Cal.App.3d at 3.)

 

Probable validity, in this case, has been established pursuant to the application, which is

executed under penalty of perjury by Plaintiff’s Recovery Vendor Support Analyst James Lynch

(“Lynch”) and the exhibits attached thereto. Lynch attests, in relevant part, as follows: At all

times mentioned herein, Plaintiff was doing business as Audi Financial Services. (Lynch Decl., ¶

1). On May 30, 2022, Defendant entered into a Retail Installment Sales Contract (hereinafter,

“Agreement”) with Plaintiff's Assignor, Audi Ontario (hereinafter, “Plaintiff’s Assignor”),

wherein Plaintiff’s Assignor agreed to lease the Audi e-tron Sportback, VIN

#WA12AAGE0NB030716 (“Collateral”) subject vehicle to Defendant in exchange for

Defendant’s $5,750.00 down payment and 72 monthly payments of $1,616.96 commencing on July 14, 2022, and continuing on the 14th day of each month thereafter until the entire balance was paid in full. (Id., ¶ 3, Exh. 1.) Plaintiff’s Assignor then transferred all of its rights, title and interest in and to the Agreement as well as the Collateral securing said Agreement to Plaintiff. (Id., ¶ 4.) Plaintiff and Plaintiff’s Assignor performed all of the terms and conditions of the Agreement required to be performed by them. (Id., ¶ 5.) Plaintiff perfected Title to the Collateral with the State of California as a lienholder, thereby perfecting its ownership interest in the subject Collateral. (Id., ¶ 5, Exh. 2.)

 

On July 14, 2022, Defendant failed to make the monthly payment then due and owing. (Id., ¶ 6.)

Defendant has failed to become current in the payments under the Agreement. (Id.) Plaintiff has

made demand upon Defendant for the return of the Collateral to Plaintiff. (Id., ¶ 13.) The court

notes that Paragraph 3 of the Agreement allows for repossession of the Collateral in the event of

default. The Collateral has a fair market value of $68,149.00, based upon the Kelley Blue Book

Appraisal Guide. (Id., ¶ 17, Exh. 3.) The balance owed to Plaintiff is $101,497.66, plus other

expenses according to proof at the time of trial, interest and attorney’s fees. (Id., ¶¶ 8 and 9.)

 

Plaintiff is informed and believes that the Collateral was, at the commencement of this action,

located at 2124 Cantaria Ave., Rowland Heights, CA 91748 (i.e., Defendant’s physical home

address as located by Plaintiff via skip tracing), or at such other location known to Defendant.

Id., ¶ 11.) Defendant’s address provided on the Agreement (i.e., 18351 Colima Road, Rowland

Heights, #133, CA 91748) is located at a private mailbox store and is a mailing address. (Id.) The

Collateral was not taken from Plaintiff for a tax, assessment, or fine, pursuant to statute, and has

not been seized under an execution against Plaintiff. (Id., ¶ 14.)

 

Undertaking: A bond must be posted as part of the undertaking unless the court finds that the defendant has no interest in the property.  (Code Civ. Proc., § 515.010, subd. (b).) The undertaking must be in an amount equal to twice the value of the defendant's interest in the property (market value less all liens, etc.).  (Code Civ. Proc., § 515.010.) Defendant’s interest is based on the market value of the property less (1) any amount due and owing on any conditional sales contract or security agreement, (2) all liens and encumbrances on the property, and (3) any other factors to determine the defendant’s interest in the property.  (Code Civ. Proc., § 515.010, subd. (a).)

 

The application is granted, with no bond. The court determines that, since the balance owed is substantially more than the fair market value of the Collateral, Defendant has no interest in same, and therefore Plaintiff is not required to post an undertaking.