Case Number: EC060545 Hearing Date: May 02, 2014 Dept: B

ATTENTION: THE COURT WILL BE DARK ON MAY 2, 2014.

TO ALL COUNSEL AND UNREPRESENTED PARTIES:
PLEASE REVIEW THE TENTATIVES BELOW, AND ADVISE THE CLERK OF THE COURT AT (818) 557-3472 WHETHER YOU SUBMIT TO THE TENTATIVE OR WISH TO SCHEDULE ANOTHER HEARING DATE. IF YOU WISH TO SCHEDULE ANOTHER HEARING DATE, PLEASE CONTACT ALL OPPOSING PARTIES AND AGREE ON A HEARING DATE OF MAY 16, MAY 23, OR MAY 30, AND INFORM THE CLERK OF THE SELECTED DATE.

Motion for:
1. Order authorizing the Plaintiff to deposit $ with the Court.
2. Order awarding the sum of $12,066.96 to the Plaintiff.
3. Order discharging Plaintiff from this case and from all liability involving the rights and obligations of the parties arising from the lawsuit.

The Plaintiff is the trustee on a deed of trust recorded on property formerly owned by the Defendants. At the request of the beneficiary, the Plaintiff commenced foreclosure proceedings and sold the property at a public auction on December 14, 2012. After paying the amount of the unpaid debt, the Plaintiff has a surplus of $64,238.24.

At the time of the sale, title was held in the following manner

1) Sahak Navasartian with a 7/8 interest; and
2) Ridge Group Trust with a 1/8 interest.

The Plaintiff filed this complaint in interpleader in order deposit this sum with the Court so that the Court may determine to whom the surplus should be distributed.

Trial is set for May 12, 2014.

This hearing concerns the Plaintiff’s motion for an order discharging it from the action. CCP section 386(b) provides that when conflicting claims are made upon a party, the party may bring an action against the conflicting claimants to compel them to interplead and litigate their claims. Civil Code section 2924j(e) authorizes a trustee to file an interpleader action to resolve a dispute about the proceeds of a trustee’s sale.

Under CCP section 386(c) any amount which the plaintiff admits to be payable may be deposited with the clerk of the court at the time of the filing of the complaint in interpleader without first obtaining an order of the Court. With regards to discharging the plaintiff, the procedure is not spelled out in the statute, but has developed through the case law. Great-West Life Assurance Co. v. Superior Court of Los Angeles County (1969) 271 Cal. App. 2d 124, 126-127. Under the case law, in order to obtain a discharge, the Plaintiff must show that it has a right to an interpleader action. Id. If the Plaintiff shows that it has a right to an interpleader, then the Court will enter an interlocutory decree requiring the Defendants to litigate their claims among themselves. Id. After the Plaintiff pays the money into the Court pursuant to this interlocutory order, the Plaintiff is discharged and ceases to be a party to the litigation. Id.

The pending complaint in interpleader arises from the Plaintiff’s inability to determine to which Defendant it should distribute the $64,238.24 surplus remaining after a non-judicial foreclosure sale. The Plaintiff provides facts in the declaration of its attorney, John Perry, to demonstrate that there is a dispute regarding the sale because the Defendant, Carlos Velasquez, co-trustee of the Ridge Group Trust, and Defendant, Sahak Navasartian, dispute the manner in which the surplus should be divided. Sahak Navasartian claims the entire amount and Carlos Velasquez claims that he is owed $40,000 plus 1/8 of the remainder.

The Defendants did file any opposition papers to the motion.

The Plaintiff’s facts demonstrate that there are grounds to interplead the surplus amount with the Court and to discharge the Plaintiff from the action. Accordingly, the Court grants the Plaintiff’s request to implead the funds and discharges it from the action.

Further, CCP section 386.6 permits the party that follows the procedure set forth in CCP section 386 to request that the Court award the party the costs and reasonable attorney fees incurred in such action. Under CCP section 386.6, the Court may award these costs and attorney fees from the amount in dispute. The Plaintiff shows that it has incurred $12,066.96 in costs and attorney’s fees with the facts in the lengthy paragraph 12 to the declaration of the Plaintiff’s attorney, John Perry.

The amount requested includes costs of $1,401.96 and attorney’s fees of $10,665 that were incurred to communicate with the Defendants and to litigate this action. This amount is a reasonable amount to incur in order to investigate the adverse claims and then file and litigate the pending action.

Accordingly, the Court awards $12,066.96 to the Plaintiff under CCP section 386.6 to be taken from the impleaded funds.

Accordingly, the Court finds that the Plaintiff has demonstrated grounds to deposit the surplus finds with the Court, to award the Plaintiff the reasonable attorney fees and costs of $12,966.96 from the surplus, and to discharge the Plaintiff from further liability and so Orders.