This case was last updated from Los Angeles County Superior Courts on 10/10/2021 at 06:37:28 (UTC).

CAPITAL TRUST ESCROW, A CALIFORNIA CORPORATION VS KC & OJ GOLDENROOT LLC. A CALIFORNIA LIMITED LIABILITY COMPANY, ET AL.

Case Summary

On 03/17/2020 CAPITAL TRUST ESCROW, A CALIFORNIA CORPORATION filed an Other lawsuit against KC OJ GOLDENROOT LLC A CALIFORNIA LIMITED LIABILITY COMPANY. This case was filed in Los Angeles County Superior Courts, Spring Street Courthouse located in Los Angeles, California. The Judge overseeing this case is SERENA R. MURILLO. The case status is Pending - Other Pending.

Case Details Parties Documents Dockets

 

Case Details

  • Case Number:

    *******2545

  • Filing Date:

    03/17/2020

  • Case Status:

    Pending - Other Pending

  • Case Type:

    Other

  • County, State:

    Los Angeles, California

Judge Details

Judge

SERENA R. MURILLO

 

Party Details

Plaintiff

CAPITAL TRUST ESCROW A CALIFORNIA CORPORATION

Defendants

DEPARTMENT OF TAX AND FEE ADMINISTRATION STATE OF CALIFORNIA

KC & OJ GOLDENROOT LLC. A CALIFORNIA LIMITED LIABILITY COMPANY

EID SALLY MEDHAT

Attorney/Law Firm Details

Plaintiff Attorneys

ADLER JAMES EMANUEL

ADLER JAMES EMANUEL ESQ.

Defendant Attorneys

GEARY VICTORIA CHRISTINE TAX COUNSEL IV

GEARY VICTORIA

 

Court Documents

Motion for Order (name extension) - Motion for Order NOTICE OF MOTION AND MOTION FOR ORDERS FOR DISCHARGE AND DISMISSAL OF PLAINTIFF, AND FOR PAYMENT OF FEES AND COSTS; MEMORANDUM OF POINTS AND AUTHOR

2/5/2021: Motion for Order (name extension) - Motion for Order NOTICE OF MOTION AND MOTION FOR ORDERS FOR DISCHARGE AND DISMISSAL OF PLAINTIFF, AND FOR PAYMENT OF FEES AND COSTS; MEMORANDUM OF POINTS AND AUTHOR

Minute Order - Minute Order (Hearing on Motion to Dismiss)

7/13/2021: Minute Order - Minute Order (Hearing on Motion to Dismiss)

Notice of Ruling - Notice of Ruling

7/14/2021: Notice of Ruling - Notice of Ruling

Minute Order - Minute Order (Non-Jury Trial;)

9/14/2021: Minute Order - Minute Order (Non-Jury Trial;)

Certificate of Mailing for - Certificate of Mailing for [Minute Order (Non-Jury Trial;)]

9/14/2021: Certificate of Mailing for - Certificate of Mailing for [Minute Order (Non-Jury Trial;)]

Order (name extension) - Order [Proposed] ORDER ON STIPULATION TO SET ASIDE DEFAULT

11/17/2020: Order (name extension) - Order [Proposed] ORDER ON STIPULATION TO SET ASIDE DEFAULT

Proof of Personal Service - Proof of Personal Service

11/18/2020: Proof of Personal Service - Proof of Personal Service

Request for Entry of Default / Judgment - Request for Entry of Default / Judgment

12/7/2020: Request for Entry of Default / Judgment - Request for Entry of Default / Judgment

Request for Entry of Default / Judgment - Request for Entry of Default / Judgment

7/20/2020: Request for Entry of Default / Judgment - Request for Entry of Default / Judgment

Proof of Personal Service - Proof of Personal Service

8/7/2020: Proof of Personal Service - Proof of Personal Service

Answer - Answer

8/11/2020: Answer - Answer

Answer - Answer

8/27/2020: Answer - Answer

Proof of Personal Service - Proof of Personal Service

5/5/2020: Proof of Personal Service - Proof of Personal Service

First Amended Standing Order - First Amended Standing Order

3/17/2020: First Amended Standing Order - First Amended Standing Order

Summons - Summons on Complaint

3/17/2020: Summons - Summons on Complaint

Complaint - Complaint

3/17/2020: Complaint - Complaint

Notice of Case Assignment - Limited Civil Case - Notice of Case Assignment - Limited Civil Case

3/17/2020: Notice of Case Assignment - Limited Civil Case - Notice of Case Assignment - Limited Civil Case

Civil Case Cover Sheet - Civil Case Cover Sheet

3/17/2020: Civil Case Cover Sheet - Civil Case Cover Sheet

6 More Documents Available

 

Docket Entries

  • 03/17/2023
  • Hearing03/17/2023 at 09:30 AM in Department 26 at 312 North Spring Street, Los Angeles, CA 90012; Order to Show Cause Re: (name extension)

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  • 09/14/2021
  • DocketOrder to Show Cause Re: Escheating Funds Pursuant to Government Code Section 68084.1(a) scheduled for 03/17/2023 at 09:30 AM in Spring Street Courthouse at Department 26

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  • 09/14/2021
  • DocketCertificate of Mailing for [Minute Order (Non-Jury Trial;)]; Issued and Filed by: Clerk

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  • 09/14/2021
  • DocketMinute Order (Non-Jury Trial;)

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  • 09/14/2021
  • DocketUpdated -- SALLY MEDHAT EID (Defendant): First Name changed from SALLY to SALLY

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  • 09/14/2021
  • DocketAddress for SALLY MEDHAT EID (Defendant) updated

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  • 09/14/2021
  • DocketUpdated -- James Emanuel Adler, Esq. (Attorney): Name Suffix: Esq.

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  • 09/14/2021
  • DocketAddress for James Emanuel Adler, Esq. (Attorney) updated

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  • 09/14/2021
  • DocketUpdated -- Victoria Christine Geary, Tax Counsel IV (Attorney): Organization Name changed from California Dept. of Tax and Fee Administration to CA Dept. of Tax and Fee Administration; Name Suffix: Tax Counsel IV; Middle Name: Christine

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  • 09/14/2021
  • DocketAddress for Victoria Christine Geary, Tax Counsel IV (Attorney) updated

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21 More Docket Entries
  • 07/20/2020
  • DocketDefault entered as to SALLY MEDHAT EID; On the Complaint filed by CAPITAL TRUST ESCROW, a California corporation on 03/17/2020

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  • 05/05/2020
  • DocketProof of Personal Service; Filed by: CAPITAL TRUST ESCROW, a California corporation (Plaintiff); As to: SALLY MEDHAT EID (Defendant); Service Date: 04/24/2020; Service Cost: 103.90; Service Cost Waived: No

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  • 03/17/2020
  • DocketFirst Amended Standing Order; Filed by: Clerk

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  • 03/17/2020
  • DocketNotice of Case Assignment - Limited Civil Case; Filed by: Clerk

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  • 03/17/2020
  • DocketSummons on Complaint; Issued and Filed by: CAPITAL TRUST ESCROW, a California corporation (Plaintiff); As to: KC & OJ GOLDENROOT LLC. A California limited liability company (Defendant); SALLY MEDHAT EID (Defendant); DEPARTMENT OF TAX AND FEE ADMINISTRATION, STATE OF CALIFORNIA (Defendant)

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  • 03/17/2020
  • DocketCivil Case Cover Sheet; Filed by: CAPITAL TRUST ESCROW, a California corporation (Plaintiff); As to: KC & OJ GOLDENROOT LLC. A California limited liability company (Defendant); SALLY MEDHAT EID (Defendant); DEPARTMENT OF TAX AND FEE ADMINISTRATION, STATE OF CALIFORNIA (Defendant)

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  • 03/17/2020
  • DocketComplaint; Filed by: CAPITAL TRUST ESCROW, a California corporation (Plaintiff); As to: KC & OJ GOLDENROOT LLC. A California limited liability company (Defendant); SALLY MEDHAT EID (Defendant); DEPARTMENT OF TAX AND FEE ADMINISTRATION, STATE OF CALIFORNIA (Defendant)

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  • 03/17/2020
  • DocketOrder to Show Cause Re: Failure to File Proof of Service scheduled for 03/21/2023 at 08:30 AM in Spring Street Courthouse at Department 26

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  • 03/17/2020
  • DocketNon-Jury Trial scheduled for 09/14/2021 at 08:30 AM in Spring Street Courthouse at Department 26

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  • 03/17/2020
  • DocketCase assigned to Hon. Serena R. Murillo in Department 26 Spring Street Courthouse

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Tentative Rulings

b"

Case Number: 20STLC02545 Hearing Date: July 13, 2021 Dept: 26

MOTION FOR DISCHARGE OF STAKEHOLDER AND AWARD OF FEES AND COSTS

(CCP §§ 386, 386.5)

TENTATIVE RULING:

Plaintiff Capital Trust Escrow’s Motion for Discharge of Stakeholder and Request for Fees and Costs is GRANTED AS FOLLOWS.

PLAINTIFF IS DISCHARGED FROM LIABILITY ON THE CAUSE OF ACTION FOR INTERPLEADER AND AWARDED $3,916.29 ATTORNEY’S FEES, AND $1,442.39 COSTS. THE REQUEST FOR $1,135.00 FOR UNPAID ESCROW FEES AND CHARGES IS DENIED.

TRIAL REMAINS SCHEDULED FOR SEPTEMBER 14, 2021 AT 8:30 AM IN DEPARTMENT 26 IN THE SPRING STREET COURTHOUSE. IF NO CLAIMS OR APPEARANCES ARE MADE AT TRIAL, THE MATTER WILL BE SET FOR AN OSC RE: ESCHEATING FUNDS. (CODE CIV. PROC., § 128; GOVT. CODE, § 68084.1.)

ANALYSIS:

On March 17, 2020, Plaintiff Capital Trust Escrow (“Plaintiff”) filed the Complaint in this action for interpleader against Defendants KC & OJ Goldenroot LLC (“Defendant KC & OJ”), Sally Medhat Eid (“Defendant Eid”), and Department Of Tax And Fee Administration, State Of California (“Defendant Eid”).

This action arises from a dispute over the sale of a liquor license from Defendant KC & OJ to Defendant Eid, to be handled through escrow. (Compl., ¶7.) After Defendant Eid deposited funds of $14,470.00 into escrow, Defendant CDTFA served Plaintiff with notice of lien on any funds payable to Defendant KC & OJ. (Id. at ¶¶8-9.) After authorized distributions, $11,308.00 remains in escrow and subject to conflicting demands by Defendants. (Id. at ¶¶11-13.)

Plaintiff filed the instant Motion for Discharge of Stakeholder and Award of Fees and Costs (“the Motion”) on February 5, 2021. The escrow funds of $11,308.12 were deposited with the Court on April 30, 2020. To date, no opposition has been filed to the Motion.

Legal Standard

Interpleader is a procedure whereby a person holding money or personal property to which conflicting claims are being made by others, or may be made, can join the adverse claimants and force them to litigate their claims among themselves. (Code Civ. Proc., § 386, subd. (b).) Hancock Oil Co. v. Hopkins (1944) 24 Cal.2d 497, 508 (i.e., an escrow-holder who receives conflicting demands from the parties to the escrow regarding the funds or documents he or she holds); City of Morgan Hill v. Brown (1999) 71 Cal.App.4th 1114, 1122.)

Once the stakeholder’s right to interplead is established and he or she deposits the money or personal property in court, he or she may be discharged from liability to any of the claimants. This enables the stakeholder to avoid multiplicity of actions, and the risk of inconsistent results if each of the claimants were to sue him or her separately. (Cantu v. Resolution Trust Corp. (1992) 4 Cal.App.4th 857, 874; City of Morgan Hill, supra, 71 Cal.App.4th at 1122.)

“An interpleader action is traditionally viewed as two suits: one between the stakeholder and the claimants to determine the stakeholder's right to interplead, and the other among the claimants to determine who shall receive the funds interpleaded ... As against the stakeholder, claimants may raise

only matters which go to whether the suit is properly one for interpleader; i.e., whether the elements of an interpleader action are present.” (State Farm Fire & Cas. Co. v. Pietak (2001) 90 Cal.App.4th 600, 612.)

The stakeholder may seek reimbursement for its costs and reasonable attorneys’ fees incurred.

(UAP-Columbus JV 326132 v. Nesbitt (1991) 234 Cal.App.3d 1028, 1036.) The court may order payment thereof out of the funds deposited by the stakeholder. (Ibid.) Ultimately, such payment may be charged to one or more of the adverse claimants in the final judgment. (Code Civ. Proc., § 386.6.)

Finally, the Court may issue an “order restraining all parties to the action from instituting or further prosecuting any other proceeding in any court in this state affecting the rights and obligations as between the parties to the interpleader until further order of the court.” (Code Civ. Proc., § 386, subd. (f).)

Discussion

Plaintiff’s request to be discharged from liability on the cause of action for interpleader is granted. All claimants have been served with the Summons and Complaint, served with the instant motion, answered, are in default, or were dismissed from the action. (Code Civ. Proc., §§ 386 and 386.5.) The subject matter of this action is escrow funds in the amount of $11,308.12. Currently, Plaintiff cannot determine the validity of the conflicting demands that have been made. (Motion, Gabayan Decl., ¶¶8-9.) Having deposited the escrow funds with the court, Plaintiff may be discharged from further liability. (Code Civ. Proc., §§ 386.5, 386, subd. (f).)

Plaintiff also seeks an award of the following: $1,135.00 for unpaid escrow fees and charges; $3,916.29 reasonable attorney’s fees, and $1,442.39 costs. (Motion, Adler Decl., ¶¶6, 9-14 and Exh. E.) The request for attorney’s fees and costs is proper and supported by evidence that the amounts are reasonable. (Id. at ¶¶10-14 and Exh. E.) Those fees and costs are awarded pursuant to Code of Civil Procedure section 386.6. However, Plaintiff offers no legal authority for recovery of its unpaid escrow fees and charges. (See Motion, p. 4:1-5.) Regardless of the terms of the parties’ escrow agreement, Plaintiff has not shown that the interpleader action should be used to enforce those terms in its favor. Therefore, the request for unpaid escrow fees and charges is denied.

Conclusion

Plaintiff Capital Trust Escrow’s Motion for Discharge of Stakeholder and Request for Fees and Costs is GRANTED AS FOLLOWS.

PLAINTIFF IS DISCHARGED FROM LIABILITY ON THE CAUSE OF ACTION FOR INTERPLEADER AND AWARDED $3,916.29 ATTORNEY’S FEES, AND $1,442.39 COSTS. THE REQUEST FOR $1,135.00 FOR UNPAID ESCROW FEES AND CHARGES IS DENIED.

TRIAL REMAINS SCHEDULED FOR SEPTEMBER 14, 2021 AT 8:30 AM IN DEPARTMENT 26 IN THE SPRING STREET COURTHOUSE. IF NO CLAIMS OR APPEARANCES ARE MADE AT TRIAL, THE MATTER WILL BE SET FOR AN OSC RE: ESCHEATING FUNDS. (CODE CIV. PROC., § 128; GOVT. CODE, § 68084.1.)

Moving party to give notice.

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