242 Cal. App. 4th 820
Cal. Ct. App.2015Background
- 1999 supplemental judgment requires Husband to pay $12,000 monthly spousal support and maintain $2 million in life insurance for Guess's benefit; judgment recorded May 1999.
- 2001 Husband acquires Coronado property; 2005 Trust Deed encumbers Property for a $2.08 million loan; July 2005 recorded.
- 2009 loan default and trustee’s sale lead to title transfer to Bank, then 2010 transfer to Bernhardsons.
- 2011 Guess seeks declaratory relief asserting a senior lien on the Property; argues lien priority over Trust Deed and that Bank/Bernhardsons are subject to the Judgment.
- Parties stipulate: all installments through 2007 paid; unpaid installments as of June 24, 2009 total $216,000 plus interest; unpaid as of April 30, 2010 totals $336,000 plus interest.
- Trial court held the lien amount fixed at July 2005 encumbrance (zero unpaid installments then due) and that life insurance obligation does not create a lien; judgment for Bernhardsons is affirmed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether 697.390(b) fixes lien amount at transfer or encumbrance time. | Guess argues lien amount should be set at April 2010. | Bernhardsons argue lien fixed at July 2005 encumbrance time. | Lien fixed at July 2005 encumbrance time (zero). |
| Whether Husband's life insurance obligation creates a judgment lien. | Guess contends it constitutes a spousal support or money judgment. | Bernhardsons contend it is neither a money judgment nor installments-based support. | No lien; life insurance obligation not a money judgment or installments-based support. |
Key Cases Cited
- Lungren v. Deukmejian, 45 Cal.3d 727 (Cal. 1988) (plain meaning governs statutory construction when language is clear)
- Estate of Kampen, 201 Cal.App.4th 971 (Cal. Ct. App. 2011) (money judgment and certainty of amount required for CPP jury)
- In re Marriage of Cloney, 91 Cal.App.4th 429 (Cal. Ct. App. 2001) (priority of encumbrances under §697.390)