Weingarten Realty Investors v. Chiang

212 Cal. App. 4th 163, 150 Cal. Rptr. 3d 813, 2012 Cal. App. LEXIS 1289
CourtCalifornia Court of Appeal
DecidedDecember 19, 2012
DocketNo. D061348
StatusPublished
Cited by13 cases

This text of 212 Cal. App. 4th 163 (Weingarten Realty Investors v. Chiang) 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
Weingarten Realty Investors v. Chiang, 212 Cal. App. 4th 163, 150 Cal. Rptr. 3d 813, 2012 Cal. App. LEXIS 1289 (Cal. Ct. App. 2012).

Opinion

Opinion

McINTYRE, J.

In this case, the trial court assigned a judgment debtor’s property that had previously escheated to the state under the provisions of the Unclaimed Property Law (Code Civ. Proc., § 1500 et seq.) to a judgment creditor. (Undesignated statutory references are to the Code of Civil Procedure.) The assignee sought to recover the property from the state by filing a claim under section 1540. John Chiang, California’s State Controller (the Controller), denied the claim on the ground that an assignee judgment creditor is not an “owner” as defined in section 1540 and thus cannot recover unclaimed property pursuant to that section.

As we shall explain, we conclude that an assignee judgment creditor can utilize section 1540 to recover unclaimed property that has escheated to the state prior to the assignment. Accordingly, we affirm the judgment.

[166]*166FACTUAL AND PROCEDURAL BACKGROUND

The material facts in this case are undisputed. Weingarten Realty Investors (Weingarten) is a judgment creditor of Novadyne Computer Systems, Inc. (Novadyne). In August 2010, the Sacramento Superior Court assigned property held by the state’s unclaimed funds division on behalf of Novadyne to Weingarten. The property included cash from various accounts and stock from two companies. The court ordered the Controller to deliver this property to Weingarten.

Weingarten submitted a copy of the court’s assignment order along with verified claim forms for each item of property to the Controller pursuant to section 1540. The Controller denied the claims asserting, among other things, that the court did not have jurisdiction over the Controller or the property subject to the assignment and only an “owner” who had a legal right to the property before it escheated to the state could recover under section 1540.

Weingarten filed an action in the San Diego Superior Court alleging that the Controller improperly denied its claims. Thereafter, Weingarten moved for summary judgment. The Controller admitted that there were no material factual disputes, but asserted that Weingarten was not entitled to summary judgment as a matter of law for essentially the same reasons raised in this appeal. The trial court granted summary judgment in favor of Weingarten, and this appeal followed.

DISCUSSION

I. Trial Court’s Jurisdiction

The Controller contends that the Sacramento Superior Court’s order assigning Novadyne’s unclaimed property to Weingarten is void because the court lacked jurisdiction over the property and the Controller. We reject this argument.

Section 708.510, subdivision (a), provides the following: “[Ujpon application of the judgment creditor on noticed motion, the court may order the judgment debtor to assign to the judgment creditor or to a receiver ... all or part of a right to payment due or to become due, whether or not the right is conditioned on future developments . . . .”

Here, the Sacramento Superior Court’s order assigned “funds and stocks held by the State of California, Office of the Controller, Unclaimed Funds Division” to Weingarten. The order further directed the Controller to deliver this property to Weingarten. Weingarten did not seek to enforce the portion of [167]*167the order directing the Controller to turn over Novadyne’s unclaimed property; instead, it proceeded under section 1540 to recover that property. Accordingly, we address only the assignment portion of the order.

As an initial matter, we note that while the order on its face appears to directly assign the subject property to Weingarten, the superior court could only assign Novadyne’s interest in the property or “right to payment due.” (§ 708.510, subd. (a).) We presume this is what the court intended and note that no prejudice resulted from the wording of the order because Weingarten proceeded as if it had only those rights that Novadyne had to recover the property from the Controller.

Novadyne’s interest in the unclaimed property was the right to obtain payment from the state through the mechanisms set forth in section 1540 (post, part II.B.). That interest was assigned to Weingarten who, as an assignee, “ ‘stands in the shoes’ ” of Novadyne. (Road Sprinkler Fitters Local Union No. 669 v. G & G Fire Sprinklers, Inc. (2002) 102 Cal.App.4th 765, 775 [125 Cal.Rptr.2d 804].) In order to assign Novadyne’s rights to recover the unclaimed property from the state to Weingarten, the superior court was not required to have jurisdiction over the Controller. Rather, it was only required to have jurisdiction over Novadyne, which is undisputed. Pursuant to section 708.510, the court had the power to order Novadyne to assign to Weingarten Novadyne’s right to payment from the state. Accordingly, the Controller’s jurisdiction arguments lack merit.

II. Section 1540

A. General Legal Principles and Standard of Review

This action presents an issue of law regarding the interpretation of section 1540 as applied to undisputed facts. Our review is de novo (Murphy v. Padilla (1996) 42 Cal.App.4th 707, 711 [49 Cal.Rptr.2d 722]) and begins “with the fundamental premise that the objective of statutory interpretation is to ascertain and effectuate legislative intent. [Citations.]” (People v. Flores (2003) 30 Cal.4th 1059, 1063 [135 Cal.Rptr.2d 63, 69 P.3d 979].) To determine legislative intent, we must examine the words of the statute, giving them their usual and ordinary meaning and construing the words and clauses in the context of the statute as a whole. (People v. Murphy (2001) 25 Cal.4th 136, 142 [105 Cal.Rptr.2d 387, 19 P.3d 1129].) “We are not free to give the words of a statute a definition ‘different from the plain and direct import of the terms used.’ [Citation.] Rather, it is our role to ascertain the meaning of the words used, not to insert what has been omitted or otherwise rewrite the law to conform to an intention that has not been expressed. [Citation.]” (Gray Cary Ware & Freidenrich v. Vigilant Insurance Co. (2004) 114 Cal.App.4th 1185, 1190 [8 Cal.Rptr.3d 475] (Gray).)

[168]*168With these general principles in mind, we must evaluate whether section 1540 permits an assignee judgment creditor to recover unclaimed property that has previously escheated to the state.

B. Analysis

The Controller contends Weingarten cannot recover Novadyne’s unclaimed property under section 1540 because it is not an “owner” as defined in that section. We reject this argument. Before we explain our conclusion, however, we provide an overview of the Unclaimed Property Law.

“The [Unclaimed Property Law] governs the state’s handling and disposition, generally through the controller, of property such as bank accounts and securities, held by entities such as banks, brokerage firms, and insurance companies, the owners of which have not acknowledged or claimed their interest in for several years, generally three. Such property by statute escheats, nonpermanently, and the holder must transfer it to the controller.” (Morris v. Chiang (2008) 163 Cal.App.4th 753, 755-756 [77 Cal.Rptr.3d 799] (Morris).)

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Cite This Page — Counsel Stack

Bluebook (online)
212 Cal. App. 4th 163, 150 Cal. Rptr. 3d 813, 2012 Cal. App. LEXIS 1289, Counsel Stack Legal Research, https://law.counselstack.com/opinion/weingarten-realty-investors-v-chiang-calctapp-2012.