McCoy Electric Corporation vs Annette Rubin et al

Case Number

16CV03591

Case Type

Hearing Date / Time

Mon, 10/21/2024 - 10:00

Nature of Proceedings

1) CMC; 2) Debtor's Examination as to L and R Auto Parks Inc; 3) Debtor's Examination as to Rubin Parking Investments, Inc; 4) Motion: Order Charging Judgment Debtor's Interest in Partnerships and Limited Liability Companies

Tentative Ruling

McCoy Electric v. Anette Rubin and Stuart Rubin     

Case No. 16CV03591        

Hearing Date: October 21, 2024                                             

HEARING:              Plaintiff McCoy Electric Corporation’s Motion for Order to Charge Judgment Debtors’ Interests in Partnerships and Limited Liability Companies

                                                             

ATTORNEYS:        For Plaintiff McCoy Electric.: Daniel E. Engel

                                    For Defendants Annette Rubin and A. Stuart Rubin: Self Represented

                                    For Cross Defendant/Cross Complainant The Los Canoas Co.      dba Construction Plumbing: Daniel E. Engel

                                    For Intervening Party U.S. Real Estate Credit Holdings III-A,

                                                LP: Marsha A. Houston, Christopher O. Rivas

                                    [For additional appearances see list.]

                                   

TENTATIVE RULING:

1. Plaintiff McCoy Electric Corporation’s motion for order to charge judgment debtors’ interests in partnerships and limited liability companies is granted.
   1. McCoy Electric Corporation shall prepare formal Orders containing the language set forth in the analysis below.

Background:

This action arises out of a remodeling project at residential property located at 4347 Marina Drive, Santa Barbara, California 93110. The Property was owned by defendants and cross-complainants Annette Rubin and A. Stuart Rubin (“Rubins”).

Plaintiff and cross-defendant McCoy Electric Corporation (“McCoy”), an electrical contractor, commenced the action on August 15, 2016, claiming that it was still owed sums for labor and materials furnished at the Property. In response, the Rubins cross-complained against McCoy and its principal, Richard McCoy, for breach of contract, negligent construction, overcharging, conversion of materials, and accounting. The Rubins cross-complained against The Las Canoas Co. dba Construction Plumbing (“CP”), as well as several other parties, on September 19, 2019, asserting causes of action for negligence, products liability, and breach of contract.

CP filed an answer to the Rubin’s cross-complaint on October 25, 2019, asserting a general denial and several affirmative defenses. On October 25, 2019, CP also cross-complained against the Rubins, alleging a claim for breach of written settlement agreement.

The Rubins dismissed their cross-complaint against CP on March 11, 2022.

On November 2, 2022, following a court trial, Judgment was entered in favor of McCoy, and against the Rubins, for $355,279.10 in damages plus $65,878.70 in attorney fees and costs. Since that time, the amount owed by the Rubins to McCoy has increased. By way of McCoy’s renewal of judgment filed on June 14, 2024, the Rubins owed a total of $487,534.31.

McCoy now seeks an order charging the interest of the Rubins in 15 partnerships and limited liability companies.

The Rubins have not filed opposition or any other responsive document to the motion.

Intervenor, U.S. Real Estate Credit Holdings III-A, LP (“USRECH”) has filed a limited objection to the motion to protect what it argues are priority liens.

Analysis:

“If a money judgment is rendered against a partner or member but not against the partnership or limited liability company, the judgment debtor’s interest in the partnership or limited liability company may be applied toward the satisfaction of the judgment by an order charging the judgment debtor’s interest pursuant to Section 15907.03, 16504, or 17705.03 of the Corporations Code.” (Code Civ. Proc., § 708.310.)

McCoy has established, for purposes of this motion, that the Rubins hold interests, either directly or indirectly, in all of the limited liability companies and limited partnerships listed in the motion. Charging orders are appropriate in order for McCoy to attempt collection on its judgment against the Rubins.

As noted above, intervening party, USRECH, filed limited objections to McCoy’s motion. USRECH only objects to the motion to the extent that it requests that the court “makes it clear when it rules on the Charging Motion that its rulings are not intended, nor shall they be interpreted to be an adjudication of the existence, validity, enforceability or propriety of USRECH’s liens.”

By way of evidence submitted in conjunction with previous motions for charging orders in this case, USRECH has previously obtained and perfected liens against the Rubins.

The dispute regarding the existence, validity, enforceability, and propriety of the respective liens between McCoy, CP, and USRECH is currently being litigated. As such, USRECH’s request is reasonable at this time.

The motions will be granted, but McCoy will be instructed to prepare orders, for each of the entities identified in its motions, that utilizes the following language:

“The motion of McCoy Electric Corporation came regularly for hearing on October 21, 2024, before Hon. Colleen K. Sterne, in Department 5 of the above-entitled court, with appearances by counsel as follows: [list the names of the persons who appeared at the hearing and, as applicable, who they represented]. The court having considered the documents filed in connection with the motion and heard the argument of counsel, and good cause appearing:

IT IS ORDERED:

1. That the interest of Annette Rubin or A. Stuart Rubin in the [partnership or LLC] known as [Name of partnership or LLC], whose address is [address of partnership or LLC] [is/are] hereby charged with the unpaid balance of the judgment entered in favor of McCoy Electric Corporation and against Annette Rubin and A. Stuart Rubin, jointly and severally, on November 2, 2022, in the sum of $355,279.10 plus attorney fees and costs in the amount of $65,878.70, increased to $487,534.31 on June 14, 2024, by way of renewal of judgment..

2. That [Name of partnership or LLC and its members or general partners] shall pay any money or property due or to become due to Annette Rubin or A. Stuart Rubin directly to McCoy Electric Corporation until the amount remaining due on the judgment, plus all accrued interest and costs thereon is paid in full.

3. This Order is not intended to be, nor shall it be interpreted to be an adjudication of the existence, validity, enforceability, or priority of any attachment liens on the property of Annette Rubin or A. Stuart Rubin that may have been created by levy of a writ of attachment issued by the Riverside County Superior Court in U.S. Real Estate Credit Holdings III-A, LP v. Glenroy Coachella, LLC et al., case no RIC1905743.”