Need help collecting on a small claims case!!!

[fasttommyv]

What is the name of your state (CA - Orange County)?

Hello, First post here.

I have been involved in a small claims case for quite some time now. My landlord wrongfully withheld 100% of my security deposit. I went to small claims, and in March 2010, won everything that i was seeking. As you might know getting the judgment is only 25% of the battle. They basically told me that they don't agree with the verdict, and they will never pay.

I performed a Judgment debtors exam, and subpoenaed all of their financial records. In short, they claim that they have no income, no savings, no retirement, no vehicles etc... Personally, I suspect that they are shielding themselves by transferring assets to family members... I did a writ of execution on their bank accounts and only got a small % of the total judgment.

But, in the judgment debtors exam, i found out that they own 3 high $$$ southern California properties, and collect $12,000/month in rental income. So, how do i go after that rental income? Is there a way to get a court order that makes the current tenants pay me their rent until the debt is settled? Does anyone have any advise on how to collect on this?

Thanks for your help!

 

[dcatz]

Look up "Assignment Order" (Code of Civil Procedure sect. 708.510) and remove your duplicate post from the Debt Collection forum before somebody calls you on it.

"708.510. (a) Except 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."

Now you only have to know how to file a motion - notice, declaration, points & authorities and proposed order - and get a hearing date and get it served.

 

[fasttommyv]

Thanks for your help, and sorry about the cross post, wasn’t sure where the best forum was...

I tried to find a form on the CA court website relating to this, and was unsuccessful. I am guessing that doing this is more complicated then filling out a standard form, having a court officer sign it, and serving it to the tenants correct? Do you have any guidance on how to start this procedure? Is it best to hire an attorney to do this, or is this something that a DIYer can do with a reasonable amount of work?

Thanks again!

 

[dcatz]

No fill-in-the-blanks form and a surprise to any SC judge but, with research, you can DIY.
Use a law library to understand the components of a motion. Notice is pretty simple. The Declaration should reference your judgment and how you learned of the asset(s). Identify the property(ies) and the tenants who will be served with the Assignment Order. For the P & As, just spell out the statute. Attach the (proposed) Order for the Court to sign. Reference the hearing date/time/place that you’ve reserved with the Court on the Notice, properly serve them with a copy and attach a Proof of Service on what you file with the Court.
If that’s too much, hire an attorney.
My guess is that you get paid before there is a chance to serve an Order on tenants.

 

[ttom1]

If the court orders the tenants to pay the rents directly to the court or the creditor, and the tenants do not do so (maybe to maintain good relationship with their landlord and avoid having their own deposit held), there will be nothing the OP can do? I can't imagine the tenants would get any legal action for this, or could there be?

 

[dcatz]

Please excuse the frustration but we're discussing a Court Order, not a game where the tenants pick and choose sides. If you read the statute posted, the LL is ordered to assign legal rights to collection to the judgment creditor and the tenants are served with a legal order to pay the judgment creditor. If they don't, they haven't paid rent, have they? Then eviction follows or an execution writ is used on the tenants, who have become judgment debtors as well. If you're a tenant, do you choose to defy a Court Order? If you're a LL, do you want your tenants to learn that you're a judgment debtor and have subjected them to a to a legal mandate?
It's Small Claims. How likely is it that you, the LL, can get future tenants, if this could happen again for the amount in contention?

 

[ttom1]

If they don't, they haven't paid rent, have they?

This. Thank you very much for the explanation.

 

[dcatz]

Just for information purposes (because FA is about learning), I’ll give you an analogous situation:

You’re a judgment creditor and get a judgment against John Doe. To enforce it, you serve a wage garnishment on John’s employer, Acme, Inc. The CFO at Acme says “Nuts to them. John’s a good ol’ boy and, besides, he’s the owner’s nephew. Ignore them and give him his paycheck”.

You turn around and file a “Creditor’s Suit in Equity” against Acme alleging exactly what they did – ignored the wage garnishment. Acme did it. They have absolutely no defense. Result: Acme will always become a judgment debtor as well for whatever amount they paid good ol’ John, plus costs, interest and fees.

 

[CourtClerk]

DCatz: Where did you disappear off to??? You haven't posted in a while.

FYI: I've seen assignment orders done in small claims, and it didn't need a long drawn out motion with P&A's either. I'd suggest before the OP goes the route of filing a motion (more money and research he may not be able to do), that he try filling out a SC-105 (Request for Court Order and Answer), and try it that way first (it works here). You'll still have to cite statute, but it doesn't have to be as formal. Use additional paper if you need room (and you will, if done properly).

 

[dcatz]

You mean your ears weren't burning in this post?
https://forum.freeadvice.com/small-claims-courts-24/judgment-collection-539465-p2.html

Or when my law partner Chien's criticism of mcbeth's saying service could be made on a 12-year old temporarily resulted in a closed thread?

You're right, of course, but, as Willyjo would say, "Is it possible. Yes."

A SC hearing officer would fall off the bench if it were presented, but that's probably the reason it wouldn't/couldn't be denied, and I got a chuckle.

In another thread, I said no to video in Small Claims and the very next day I was sitting as a pro tem and somebody brought in a camcorder and wanted to have [one of the smaller courts] provide a screen. Another chuckle.

I've been busy and FA gets a little repetitious when folks don't use "search" and ask the same things again and again.

We were watching March Madness and both chimed in in a couple of places at half-time. Now it will probably be another year at least.

 

[fasttommyv]

Thankyou so much for your help everyone. I'm going to try the SC-105 form, as it seems to contain everything that i want to do. I will articulate the reasonings, the info from the Judgment Debtors Exam, and the statute that i want to use to justify my actions. If that doesnt work, i will have to invest a good amount of going through the assignment process as dcatz outlined. I will let you know how it goes.

Thanks again!