This case was last updated from Los Angeles County Superior Courts on 03/18/2016 at 00:13:20 (UTC).

IN RE 4778 GLENALBYN DRIVE LOS ANGELES CA 90065

Case Summary

On 03/07/2014 IN RE 4778 GLENALBYN DRIVE LOS ANGELES CA 90065 was filed as an Other lawsuit. This case was filed in Los Angeles County Superior Courts, Stanley Mosk Courthouse located in Los Angeles, California. The Judge overseeing this case is ROBERT L. HESS. The case status is Disposed - Dismissed.

Case Details Parties Documents Dockets

 

Case Details

  • Case Number:

    ****7653

  • Filing Date:

    03/07/2014

  • Case Status:

    Disposed - Dismissed

  • Case Type:

    Other

  • Court:

    Los Angeles County Superior Courts

  • Courthouse:

    Stanley Mosk Courthouse

  • County, State:

    Los Angeles, California

Judge Details

Presiding Judge

ROBERT L. HESS

 

Party Details

Petitioner

RECONTRUST COMPANY

Respondent

NO NAMED RESPONDENT ON FILE

Attorney/Law Firm Details

Petitioner Attorney

MCCARTHY & HOLTHUS LLP

 

Court Documents

PETITION AND DECLARATION REGARDING UNRESOLVED CLAIMS AND DEPOSIT OF UNDISTRIBUTED SURPLUS PROCEEDS OF TRUSTEE?S SALE

3/7/2014: PETITION AND DECLARATION REGARDING UNRESOLVED CLAIMS AND DEPOSIT OF UNDISTRIBUTED SURPLUS PROCEEDS OF TRUSTEE?S SALE

NOTICE OF PETITION OF TRUSTEE, RECONTRUST COMPANY, TO DEPOSIT SURPLUS FUNDS PURSUANT TO CIVIL CODE ?2924J(C) & (D)

3/7/2014: NOTICE OF PETITION OF TRUSTEE, RECONTRUST COMPANY, TO DEPOSIT SURPLUS FUNDS PURSUANT TO CIVIL CODE ?2924J(C) & (D)

NOTICE OF CASE ASSIGNMENT

4/2/2014: NOTICE OF CASE ASSIGNMENT

NOTICE OF CASE MANAGEMENT CONFERENCE

4/7/2014: NOTICE OF CASE MANAGEMENT CONFERENCE

NOTICE OF CASE MANAGEMENT CONFERENCE

4/22/2014: NOTICE OF CASE MANAGEMENT CONFERENCE

Unknown

7/7/2014: Unknown

Minute Order

7/30/2014: Minute Order

4OTICE OF ENTRY OF ORDER TO DEPOSIT SURPLUS FUNDS PURSUANT RO CAL. CIV. CODE ?2924J(C) & (D)

10/23/2014: 4OTICE OF ENTRY OF ORDER TO DEPOSIT SURPLUS FUNDS PURSUANT RO CAL. CIV. CODE ?2924J(C) & (D)

CIVIL CASE COVER SHEET

3/6/2017: CIVIL CASE COVER SHEET

 

Docket Entries

  • 04/07/2014
  • Notice-Case Management Conference Filed by Clerk

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  • 03/07/2014
  • Petition

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Tentative Rulings

Case Number: BS147653    Hearing Date: January 10, 2020    Dept: 24

Claimant Patricia J. Egan’s motion to disburse surplus funds is GRANTED.

On March 7, 2014, ReconTrust Company ("Petitioner") filed a Petition and Declaration Regarding Unresolved Claims and Deposit of Undistributed Surplus Proceeds of Trustee Sale (the "Petition"). Per the Petition, the total sale proceeds were $303,000. After paying the foreclosing creditor and its own fees and expenses, the Trustee petitioned to deposit $99,018.33 in surplus funds with the Court. On July 30, 2014, the Court approved the Petition and signed an order ordering the surplus funds deposited with the court.

On September 26, 2019, Claimant Patricia J. Egan (“Egan”), as named Trustor in the Petition, filed the instant motion to disburse the surplus, unclaimed funds. No opposition was filed. On November 6, 2019, the Court noted procedural irregularities with the hearing and set the section 2924j hearing for January 10, 2020. Notice of the hearing was provided by Plaintiff. No further filings were made.

Discussion

Civil Code sections 2924 through 2924k provides a comprehensive framework for the regulation of non-judicial foreclosure sales pursuant to a power of sale contained in a deed of trust. (Moeller v. Lien (1994) 25 Cal.App.4th 822, 830.) Civ. Code § 2924k(a) dictates payment of surplus funds to parties who recorded their interests before trustee's sale. Following a non-judicial foreclosure, a trustee may file a petition & declaration of the unresolved claims and deposit with the Clerk of the Court that portion of the sales proceeds that cannot be distributed. (Civ. Code § 2924j(c).)

If the trustee decides to deposit the funds with the court clerk, he must first send written notice to all interested persons, as defined, informing them of his or her intention to deposit the funds and that their claims must be filed within 30 days from the date of the notice. (See Civ. Code § 2924j(c)-(d).) The clerk shall deposit the amount with the county treasurer or a specified trust bank account. (Civ. Code § 2924j(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. (Ibid.) Within 90 days after deposit with the clerk, the court shall consider all claims filed at least 15 days before the date on which the hearing is scheduled by the court, the clerk shall serve written notice of the hearing by first-class mail on all claimants identified in the trustee's declaration at the addresses specified therein. (Civ. Code § 2924j(d).) The court shall distribute the deposited funds to any and all claimants entitled thereto. (Ibid.)

Proceeds from the trustee's foreclosure sale are applied (i) first, to pay the trustee's fees and expenses in exercising the power of sale and conducting the sale; (ii) next, to satisfy the debt to the beneficiary (lender); (iii) next, to the payment of junior creditors in the order of their priority; and (iv) the balance, if any, to the trustor or its successor in interest. (Civ. Code § 2924k(a).)

No additional claimants filed claims. Egan remains the only claimant. As the trustor, Egan is entitled to the remaining balance of $99,018.03. Accordingly, the motion is GRANTED.

Moving party is ordered to give notice.

Case Number: BS147653    Hearing Date: November 06, 2019    Dept: 24

Claimant Patricia J. Egan’s motion is CONTINUED to January 10, 2020 at 8:30 a.m.

Discussion

Civil Code sections 2924 through 2924k provides a comprehensive framework for the regulation of non-judicial foreclosure sales pursuant to a power of sale contained in a deed of trust. (Moeller v. Lien (1994) 25 Cal.App.4th 822, 830.) Civ. Code § 2924k(a) dictates payment of surplus funds to parties who recorded their interests before trustee's sale. Following a non-judicial foreclosure, a trustee may file a petition & declaration of the unresolved claims and deposit with the Clerk of the Court that portion of the sales proceeds that cannot be distributed. (Civ. Code § 2924j(c).)

If the trustee decides to deposit the funds with the court clerk, he must first send written notice to all interested persons, as defined, informing them of his or her intention to deposit the funds and that their claims must be filed within 30 days from the date of the notice. (See Civ. Code § 2924j(c)-(d).) The clerk shall deposit the amount with the county treasurer or a specified trust bank account. (Civ. Code § 2924j(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. (Ibid.) Within 90 days after deposit with the clerk, the court shall consider all claims filed at least 15 days before the date on which the hearing is scheduled by the court, the clerk shall serve written notice of the hearing by first-class mail on all claimants identified in the trustee's declaration at the addresses specified therein. (Civ. Code § 2924j(d).) The court shall distribute the deposited funds to any and all claimants entitled thereto. (Ibid.)

Proceeds from the trustee's foreclosure sale are applied (i) first, to pay the trustee's fees and expenses in exercising the power of sale and conducting the sale; (ii) next, to satisfy the debt to the beneficiary (lender); (iii) next, to the payment of junior creditors in the order of their priority; and (iv) the balance, if any, to the trustor or its successor in interest. (Civ. Code § 2924k(a).)

Here, Egan requests that the Court distribute the excess funds almost 7 years after the funds were distributed. It appears that Petitioner sent out the required notices and properly deposited the funds with the Court. However, based on the court record, the Court did not set a hearing within 90 days, and no claimant therefore made a claim. (See Civ. Code § 2924j(d).) Critically, section 2924j(d) requires the Court to set the hearing. Setting such a hearing would create the time limit for a claim to be made, i.e. 15 days prior to the court-set hearing. Since there was no hearing on the matter, there was never any limitation set in place for a claim to be made on the surplus. Thus, any potential claimants were never given the opportunity to make their claim.

Therefore, the Court must set a section 2924j distribution hearing for January 10, 2020. The clerk shall serve written notice of the hearing by first-class mail on all claimants identified in the trustee's declaration at the addresses specified therein. (Civ. Code § 2924j(d).) The Court shall treat the instant motion as a claim on the funds pursuant to section 2924j(d). Any claim by any other claimant should be made 15 days prior to the noticed hearing. If no other claimants come forward, the funds will be distributed per section 2924k(a).

Moving party is ordered to give notice.