Barrett Dafin Frappier Treder & Weiss, LLP vs Hilda P Sanchez et al
Case No: 18CV02101
Hearing Date: Wed Apr 17, 2019 9:30

Nature of Proceedings: Motion for Statutory Discharge, Fees and Costs and Deposit of Surplus Funds

Tentative Ruling: The court conditionally orders that, upon deposit of $105,137.54 with the clerk of the court, plaintiff Barrett Daffin Frappier Treder & Weiss, LLP, shall be discharged from further responsibility for the disbursement of proceeds of the sale of real property at 1521½ Santa Rosa Avenue in Santa Barbara and plaintiff shall be entitled to an award of attorney fees and costs in the amount of $4,333.37. For convenience, plaintiff may deduct the award of fees and costs from the amount deposited, for a net deposit of $100,804.17.

Background: Barrett Daffin Frappier Treder & Weiss, LLP, filed a complaint in interpleader for $105,137.54 in surplus proceeds not disbursed following the non-judicial foreclosure sale of 1521½ Santa Rosa Avenue in Santa Barbara. Plaintiff is the trustee under the relevant deed of trust. Defendant Hilda P. Sanchez was the trustor of the deed of trust and is the former owner of the property. Plaintiff alleges that defendants Sam Gerard, as trustee of the SGC Revocable Trust dated July 3, 2001; Maria Chavez; Jose Almanza; Tatiana Nazarenko; Josefina Rodriguez; the Franchise Tax Board; and the Internal Revenue Service (IRS) may claim or have claimed an interest in the surplus funds.

Defendants Sanchez, Chavez, Rodriguez, Almanza, and Gerard have filed answers. The IRS filed a disclaimer. On December 18, 2018, the court entered the defaults of FTB and Nazarenko. MSC is scheduled for May 31 and trial for June 26, 2019.

Motion: Plaintiff moves for statutory discharge, attorneys’ fees and costs, and deposit of funds. Plaintiff has served the motion on all parties or their counsel of record. There is no opposition to the motion.

A person against whom multiple claims are made may bring an action against the claimants to compel them to interplead and litigate their claims. CCP § 386(b). That person may deposit funds payable with the clerk of the court without an order of the court. CCP § 386(c). “Upon deposit of that portion of the sale proceeds that cannot be distributed by due diligence, the trustee shall be discharged of further responsibility for the disbursement of sale proceeds.” Civil Code § 2924j(c).

“In ordering the discharge of such party, the court may, in its discretion, award such party his costs and reasonable attorney fees from the amount in dispute which has been deposited with the court.” CCP § 386.6(a). Plaintiff has incurred $2,395 in attorney fees and will incur another $150 for appearance at the hearing. Costs of $1,788.37 appear reasonable. The total fees and costs that can be awarded are $4,333.37.

Plaintiff has not yet deposited the funds with the court clerk. So the court cannot presently order discharge or award fees and costs. The court conditionally orders that, upon deposit of $105,137.54 with the clerk of the court, plaintiff Barrett Daffin Frappier Treder & Weiss, LLP, shall be discharged from further responsibility for the disbursement of sale proceeds and shall be entitled to an award of attorney fees and costs in the amount of $4,333.37. For convenience, plaintiff may deduct the award of fees and costs from the amount deposited, for a net deposit of $100,804.17.