2014-00170181-CL-PT

Grace Nicolas vs. Michael Anthony Broughton

Nature of Proceeding: Motion for a Spousal Earnings Withholding Order

Filed By: Cribb, Steven D.

The Motion for a Spousal Earnings Withholdings Order is GRANTED.

This matter arises out of a debt assigned to Assignee of Record, Northern California Collection Service (NCSS). Plaintiff Grace Nicolas was a former employee of Defendant Michael Broughton and there apparently was a wage dispute that was submitted to the Labor Commissioner and decided adversely to Mr. Broughton in October 2014. Judgment was entered in favor of the Labor Commissioner on October 15, 2014.

In June 2015, NCSS took an assignment of that settlement debt from Plaintiff.

In September 2016, Defendant Broughton and Plaintiff/NCSS entered into a settlement. The settlement terms required Broughton to pay a total sum of $20,418.08 in accordance with a payment structure set forth in the settlement agreement, primarily requiring Defendant to pay $1,000 per month. The settlement agreement also required Plaintiff/NCSS to file a dismissal of the lawsuit with prejudice upon receipt of the second installment, which neither Plaintiff nor NCSS ever undertook, and a satisfaction of judgment upon receipt of the final payment. The settlement agreement was governed by the provisions of Code of Civil Procedure section 664.6 in the event that the settlement agreement required enforcement. The judgment remained unaffected, however; there is no evidence that the judgment was set aside or vacated.

NCSS avers that Defendant’s debt on the judgment is currently $3,154.96, but that Defendant has breached the settlement agreement in failing to pay the remaining balance. More specifically, according to NCSS, Defendant has not made any payments since November 22, 2017.

In an attempt to obtain the money due under the assignment, NCSS now moves the Court to attach the wages of Defendant’s wife, Nefretiri Cooley Broughton. NCSS argues that the debt is a community property debt and therefore it is appropriate for the Court to attach Mrs. Broughton’s wages to satisfy the debt. Defendant argues that the settlement agreement itself precludes any such action.

Had the Parties complied with the terms of the settlement agreement, then the proper course of action in the event of Defendant’s breach thereof would be to move for entry

of judgment against Defendant pursuant to the stipulated terms of the settlement agreement. (Code Civ. Proc. § 664.6.) That said, neither Party enforced the terms of the settlement agreement by dismissing the case and therefore an active and valid judgment remains to be enforced against Defendant, a judgment debtor, in this open case.

Pursuant to Code of Civil Procedure section 706.109, the Court is authorized to issue an earnings withholding order against a judgment debtor’s spouse upon a noticed motion. “An earnings withholding order may not be issued against the earnings of the spouse of the judgment debtor except by court order upon notice.” (CCP § 706.109.) “Except as otherwise provided by statute, all property, real or personal, wherever situated, acquired by a married person during the marriage while domiciled in this state is community property.” (Fam. Code § 760.) Further, “[e]xcept as otherwise provided by statute, the community estate is liable for a debt incurred by either spouse before or during marriage, regardless of which spouse has the management and control of the property and regardless of whether one or both spouses are parties to the debt or to a judgment for the debt.” (Fam. Code § 910.)

For the foregoing reasons, the motion is granted. The judgment creditor may “apply for the issuance of an earnings withholding order by filing an application with a levying officer in such county who shall promptly issue an earnings withholding order.” (Code Civ. Proc. § 706.102.)