Case Number: KC065281    Hearing Date: January 05, 2015    Dept: O

Creditors Adjustment Bureau, Inc. v. Ruth Owenby (KC065281)

Douglas Owenby’s CLAIM OF EXEMPTION

Respondent: Plaintiff Creditors Adjustment Bureau, Inc.

TENTATIVE RULING

At the hearing, this court will require further oral and/or documentary evidence to determine whether the exemption claims are accurate.

ANALYSIS

At the hearing, this court will require further oral and/or documentary evidence to determine whether Judgment Debtor’s exemption claims are accurate.

Douglas Owenby files a claim of exemption of what he alleges are his partnership bank accounts with debtor Ruth Owenby.

The purpose of exemption laws is to enable judgment debtors to support themselves. Exemption laws are liberally construed in the debtor’s favor. (Spencer v. Lowrey (1991) 235 Cal.App.3d 1636, 1639.)

(a) The claim of exemption and notice of opposition to the claim of exemption constitute the pleadings, subject to the power of the court to permit amendments in the interest of justice. (b) At a hearing under this section, the exemption CLAIMANT HAS THE BURDEN OF PROOF. (c) The claim of exemption is deemed controverted by the notice of opposition to the claim of exemption and both shall be received in evidence. If no other evidence is offered, the court, if satisfied that sufficient facts are shown by the claim of exemption (including the financial statement if one is required) and the notice of opposition, may make its determination thereon. IF NOT SATISFIED, THE COURT SHALL ORDER THE HEARING CONTINUED FOR THE PRODUCTION OF OTHER EVIDENCE, ORAL OR DOCUMENTARY. (d) At the conclusion of the hearing, the court shall determine by order whether or not the property is exempt in whole or in part. Subject to Section 703.600, the order is determinative of the right of the judgment creditor to apply the property to the satisfaction of the judgment. No findings are required in a proceeding under this section. (e) The court clerk shall promptly transmit a certified copy of the order to the levying officer. Subject to Section 703.610, the levying officer shall, in compliance with the order, release the property or apply the property to the satisfaction of the money judgment. (f) Unless otherwise ordered by the court, if an exemption is not determined within the time provided by Section 703.570, the property claimed to be exempt shall be released. (CCP 703.580.)

The court is in receipt of Douglas Owenby’s claim of exemption, claiming an exemption from partnership bank accounts. Judgment Debtor has provided no proof of the existence of any partnership or whether any such partnership is a general or limited partnership. The exemption claimant has the burden of proof to establish that the levied funds are subject to any exemption. (CCP 703.580(b).) There has been no direct tracing of any allegedly exempt partnership funds. Further, Judgment Creditor has produced evidence that Discover Card responded to Plaintiff’s Consumer Subpoena with documents showing that Owenby’s personal credit card is paid from the “partnership account,” establishing commingling of funds. Judgment Debtor therefore has failed to establish direct tracing of exempt funds.

At the hearing, this court will determine if there is any further oral and/or documentary evidence to determine whether Judgment Debtor’s exemption claims are accurate.