Greenberg v. Goldsman

143 Cal. App. 4th 1312, 49 Cal. Rptr. 3d 908
CourtCalifornia Court of Appeal
DecidedOctober 13, 2006
DocketNo. B186507
StatusPublished
Cited by4 cases

This text of 143 Cal. App. 4th 1312 (Greenberg v. Goldsman) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Greenberg v. Goldsman, 143 Cal. App. 4th 1312, 49 Cal. Rptr. 3d 908 (Cal. Ct. App. 2006).

Opinion

Opinion

KITCHING, J.—

INTRODUCTION

This is an appeal from an order quashing a judgment creditor’s writ of execution seeking to recover postjudgment interest. A judgment of marital dissolution ordered the husband to pay attorney fees to the wife’s former attorneys, who were named in the judgment. When judgment was entered, the husband informed the wife of his intention to pay the attorney fees to the wife’s former attorneys. Claiming that the former attorneys’ right to attorney fees was “derivative” of the client’s right to those fees, the wife prohibited any payment to her former attorneys, and the husband did not satisfy the judgment for more than seven months. We conclude that entry of a judgment ordering payment of attorney fees to the former attorneys gave them an independent statutory right to enforce the judgment pursuant to Family Code section 272. Section 272 also gives the wife certain rights regarding a judgment awarding attorney fees to her former attorneys, but those rights do not include the power to prohibit the judgment debtor from satisfying the judgment. Here the husband did not pay or tender satisfaction to the judgment creditor, and did not deposit the disputed amount into court for the judgment creditor, which would have terminated accrual of postjudgment interest pursuant to Code of Civil Procedure section 685.030, subdivision (d). Therefore interest on the judgment, which began to accrue on the date the judgment was entered, continued to accrue until the husband paid the judgment. We conclude that the trial court erroneously entered an order quashing the wife’s former attorneys’ writ of execution seeking to recover postjudgment interest, and reverse that order.

[1315]*1315FACTUAL AND PROCEDURAL HISTORY

Leonard Green and Jude Green1 married on July 27, 1995, and separated on May 30, 2000. On June 22, 2000, Leonard filed a petition for dissolution of the marriage. On November 7, 2001, the trial court bifurcated the proceeding and entered a judgment of dissolution of marriage, status only.

Leonard died on October 25, 2002. On December 23, 2002, Bernard A. Greenberg, trustee of the Leonard I. Green Living Trust (Trustee), was substituted as petitioner in the dissolution action in place of Leonard.

On October 24, 2003, Trustee and Jude signed a settlement agreement which, inter alia, divided marital property. The settlement agreement required Leonard to pay, as his contributive share of Jude’s attorney fees, $850,000 to the law firm of Freid and Goldsman, which represented Jude in the dissolution action.

After December 6, 2003, Freid and Goldsman ceased to represent Jude. Jude was subsequently represented by Martin S. Friedlander.

On December 30, 2003, Jude sought to set aside the settlement agreement as unenforceable. Trustee moved to enforce the settlement and enter a judgment under Code of Civil Procedure section 664.6. The trial court granted Trustee’s motion. A judgment filed on June 4, 2004, incorporated and ordered the parties to comply with the October 24, 2003, settlement agreement. Thus the judgment required Trustee to pay $850,000 to Freid and Goldsman.

1. Trustee states his willingness to pay Freid and Goldsman, but requests Jude’s objections, if any, to this payment.

On June 4, 2004, Trustee’s counsel sent a letter to Jude’s counsel.2 The letter enclosed a copy of the signed judgment, and stated that pursuant to the judgment, Trustee was “prepared to pay the sum of $860,0003 to Freid and Goldsman.” The letter continued, “If your client does not intend for us to make [this payment] per the Judgment, please have her state her intentions [1316]*1316now. Otherwise, we will forward the checks [to that firm] and your client will be accepting the benefits of the Judgment and will have to comply with her obligations under the Judgment.” Trustee sent copies of the letter to Freid and Goldsman and to Friedlander.

2. Jude instructs Trustee not to pay Freid and Goldsman.

Friedlander responded as Jude’s attorney of record, asserted that the judgment was void, and stated to Trustee’s attorney: “You are not to disperse [szc] any funds to any third person or take any action to enforce this void judgment.” Friedlander sent a copy of his letter to the trial judge with a request to vacate the judgment.

3. Trustee reiterates willingness to comply with the judgment, wants to avoid involvement in the parties’ fee dispute, and asserts his right to interplead funds necessary to satisfy the judgment but does not want to be liable for postjudgment interest.

On June 10, 2004, Trustee’s counsel wrote a letter to Jude’s counsel and to Freid. Trustee’s counsel stated that Freid and Goldsman had demanded immediate payment by Trustee, but Jude had not stated her reasons for objecting to the payment. Because of conflicting demands, Trustee’s counsel reserved the right to interplead funds due under the judgment but preferred to avoid doing so. The letter concluded that Freid and Goldsman should enforce the judgment by giving the notice required by Family Code section 272, subdivision (c), and Jude could dispute Freid and Goldsman’s enforcement of the attorney fee award by filing a motion under that statute or by filing an appeal. Trustee’s counsel stated that if Jude took either step, he believed the parties would agree that Trustee would be relieved of any obligation to pay postjudgment interest until Jude’s objections were resolved. Trustee’s counsel also stated that if Jude did not make a statutory motion or file an appeal, he would conclude that the parties understood that Jude consented to payment of the Freid and Goldsman’s attorney fees for Jude’s benefit. Trustee’s counsel concluded the letter by reiterating that Trustee was prepared to comply with the judgment, wanted to avoid taking sides in a dispute between Jude and Freid and Goldsman, and sought a solution to relieve Trustee of conflicting claims and of liability for postjudgment interest if payment was delayed.

4. Jude’s counsel cautions Trustee against paying Freid and Goldsman and asserts that an interpleader action by Trustee would be in bad faith.

On June 11, 2004, Jude’s counsel wrote to Trustee’s counsel. The letter noted, inter alia, that the trial court had refused to vacate the judgment. It also [1317]*1317cautioned Trastee’s counsel against issuing checks to Freid and Goldsman, and asserted that Trustee’s interpleading of those funds would be an act of bad faith.

5. Trustee again asserts his right to interplead funds and asks Freid and Goldsman to withdraw demand for payment until Jude’s objections ceased.

On June 15, 2004, Trustee’s counsel wrote to Jude’s counsel. He disagreed that interpleading these funds would be bad faith conduct, and reiterated Trustee’s right to avoid conflicting claims by interpleading the funds. Trustee’s counsel stated that he would ask Freid whether Freid would withdraw his demands for payment until Jude’s counsel withdrew Jude’s objections.

6. The Freid and Goldsman firm begins statutory enforcement of judgment debt, and tells Trustee that interpleading judgment debt would be inappropriate and that postjudgment interest continues to accrue.

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Cite This Page — Counsel Stack

Bluebook (online)
143 Cal. App. 4th 1312, 49 Cal. Rptr. 3d 908, Counsel Stack Legal Research, https://law.counselstack.com/opinion/greenberg-v-goldsman-calctapp-2006.