Estate v. Joya

232 Cal. Rptr. 3d 129, 22 Cal. App. 5th 824
CourtCalifornia Court of Appeal, 5th District
DecidedApril 27, 2018
DocketD072298
StatusPublished
Cited by7 cases

This text of 232 Cal. Rptr. 3d 129 (Estate v. Joya) is published on Counsel Stack Legal Research, covering California Court of Appeal, 5th District primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Estate v. Joya, 232 Cal. Rptr. 3d 129, 22 Cal. App. 5th 824 (Cal. Ct. App. 2018).

Opinion

HALLER, J.

*827Emerita Cruz Joya appeals from a probate court order approving the final accounting and settling the estate of Norman Casserley (Decedent). Joya had filed a creditor's claim against Decedent's estate based on a criminal restitution order entered in her husband's favor, which was recorded after Decedent's death. The court rejected Joya's argument that her claim was entitled to priority either as a recorded lien or under the state Constitution's restitution provision. We affirm.

FACTUAL AND PROCEDURAL BACKGROUND

Restitution Award and Original Abstract

Decedent and Paul Blazevich were once neighbors. A conflict arose between them *131(the nature of which is not revealed in the record), as a result of which Decedent was convicted of a crime that entitled Blazevich to restitution. On May 21, 1997, Decedent was ordered to pay Blazevich restitution totaling $17,796, plus 10 percent interest from the date of sentencing.

About 10 years later, on October 9, 2007, Blazevich obtained an "order for restitution and abstract of judgment" (capitalization omitted; hereafter, Original Abstract) from the court and recorded it.

Amended Abstract

About one week later, on October 17, 2007, Blazevich obtained an "amended order for restitution and abstract of judgment" (capitalization omitted; hereafter, Amended Abstract). The Amended Abstract reflected an additional $27,000 restitution award, bringing the total to $44,796. The record does not indicate the basis for the additional award. In addition to the new $27,000 award, the Amended Abstract indicated the balance then due under the Original Abstract had grown from $17,796 to $36,532.93 (presumably due to accrued interest on the $17,796).

Blazevich did not immediately record the Amended Abstract.

Assignment of Judgment

On February 8, 2008, Blazevich executed and recorded an assignment of judgment (Assignment) in favor of his wife, Joya. The Assignment referred *828only to the Original Abstract, but purported to convey Blazevich's interest in "all rights accrued or to accrue under that judgment."

Probate Estate

On July 3, 2015, Decedent died intestate, with no surviving spouse, children, parents, or grandparents. The respondent in this appeal, Theresa Hawkins (Administrator), filed a probate petition seeking issuance of letters of administration and appointment as the estate's personal representative.1 On January 21, 2016, the probate court appointed Administrator as the personal representative of Decedent's estate, with "full authority ... to administer the estate without court supervision under the Independent Administration of Estates Act."2

The San Diego County Public Administrator and the California Department of Health Care Services-each an unsecured creditor-filed claims against the estate for $1,379.50 and $147,766.69, respectively.

*132Administrator determined the only asset in Decedent's estate was his residence. She listed it for sale on May 16, 2016, and about one week later accepted an offer of $172,000, with a 10-day escrow period.

Joya's Claim

About one week into the escrow period, Blazevich contacted Administrator and explained that he had obtained an Amended Abstract but was unable to locate it. Blazevich asked that the Administrator accept a retired judge's *829affidavit attesting to the Amended Abstract as proof of its underlying obligation. Administrator declined and explained that the unrecorded Amended Abstract did not encumber the residence. Administrator encouraged Blazevich and his wife to submit their claim as to the recorded Original Abstract as soon as possible so that escrow could close.

Neither Blazevich nor Joya immediately submitted a creditor's claim, which delayed the close of escrow. To encourage them to submit an appropriate claim, Administrator agreed not to distribute the sale proceeds to other creditors until the probate court resolved the parties' claims regarding the Amended Abstract.

On June 10, 2016, Joya filed a creditor's claim for $178,000. She acknowledged in her claim that only the Original Abstract had been recorded, and, thus, a dispute existed as to whether the entire restitution award was secured.

On June 22, 2016-nearly one year after Decedent's death-the Amended Abstract was recorded.

Escrow closed on July 8, 2016, and Joya received $51,867.04 from the sale proceeds.3

One week later, Joya filed an amended creditor's claim for $93,358.22. On the Original Abstract, Joya acknowledged receipt of the funds from escrow, as well as an additional payment of $2,064.92 (the details of which are unclear from the record), but Joya claimed there was still a balance due of $14,569.72.4 On the Amended Abstract, Joya claimed a balance due of $78,788.50.5 In light of Joya's amended claim and the other creditors' earlier-filed claims, Administrator determined the estate was insolvent.

Administrator's Final Accounting and Joya's Objection

On September 20, 2016, Administrator filed her "First and Final Account and Report of Administrator and Petition for Settlement" (Final Accounting). In it, Administrator proposed treating Joya's, the county's, and the state's *830claims all as unsecured general debts entitled to the lowest level of priority.6 Administrator disputed a portion of Joya's amended claim, and rejected Joya's view that her claim was entitled to priority over the county's or the state's unsecured claims. First, Administrator asserted that because the Amended Abstract was not recorded until after Decedent's *133death, the debt based on that abstract was governed by the Probate Code's provisions regarding general unsecured debts (see fn. 6, ante ), not the Code of Civil Procedure's provisions regarding enforcement of judgments.7

Second, Administrator argued the amended claim's provenance as a criminal restitution order did not entitle it to preference under the California Constitution's restitution provision, which states: "All monetary payments, monies, and property collected from any person who has been ordered to make restitution shall be first applied to pay the amounts ordered as restitution to the victim." ( Cal. Const., art. I, § 28, subd. (b)(13)(C).)

Joya filed an objection to the Final Accounting. She maintained the postdeath recordation of the Amended Abstract created a lien on probate estate assets, irrespective of Code of Civil Procedure section 686.020. She also insisted her claim was entitled to priority under the Constitution's restitution provision.

Probate Court's Ruling

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Cite This Page — Counsel Stack

Bluebook (online)
232 Cal. Rptr. 3d 129, 22 Cal. App. 5th 824, Counsel Stack Legal Research, https://law.counselstack.com/opinion/estate-v-joya-calctapp5d-2018.