HALLER, J. —
Emerita 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.
Decedent and Paul Blazevich were once neighbors. A conflict arose between them (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.
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.
On February 8, 2008, Blazevich executed and recorded an assignment of judgment (Assignment) in favor of his wife, Joya. The Assignment referred
On July 3, 2015, Decedent died intestate, with no surviving spouse, children, parents, or grandparents. 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.
The San Diego County Public Administrator and the State Department of Health Care Services — each an unsecured creditor — filed claims against the estate for $1,379.50 and $147,766.69, respectively.
Administrator 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.
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
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.
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.
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
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.
The probate court found Joya's claim was unsecured and, therefore, not entitled to priority over the county's or the state's claims. The court rejected Joya's lien theory, reasoning that Joya's creation of a lien against probate estate assets was tantamount to enforcing a judgment because the only reason Joya created the lien was to establish higher claim-distribution priority.
The court also rejected Joya's constitutional priority argument, explaining that because restitution orders are "enforceable by a victim as if [they] ...
Joya appeals.
Each party contends the other lacks standing to participate in this appeal. We disagree.
Administrator contends Joya lacks standing because this appeal concerns only the Amended Abstract, and Blazevich assigned to Joya only his interest in the Original Abstract. Administrator reasons Blazevich must not have intended to assign his rights under the Amended Abstract to Joya because he was aware of the Amended Abstract when he executed the Assignment, yet he did not expressly refer to it.
Joya counters that Administrator forfeited this challenge by failing to raise it in the probate court. Alternatively, Joya maintains she has standing because the Assignment expressly states it conveys all of Blazevich's interest in the Original Abstract, "together with all rights accrued or to accrue under that judgment." (Italics added.)
Joya contends Administrator lacks "standing to participate in this appeal" because she is not "aggrieved." We disagree.
Administrator was responsible for ensuring the proper distribution of estate assets to creditors with bona fide claims. Allowing Joya's disputed claim to attain priority would have been detrimental to the estate because it would have left insufficient funds to satisfy the county's and the state's undisputed claims. Thus, Administrator has standing to represent the estate's interests in this appeal.
We easily dispose of Joya's claim that the recordation of the Amended Abstract after Decedent's death created a lien against his probate estate assets. Section 686.020 of the Code of Civil Procedure states: "After the death of the judgment debtor, enforcement of a judgment against property in the judgment debtor's estate is governed by the Probate Code, and not by this title." The California Law Revision Commission comments to this section — which are "`deemed to express the Legislature's intent'" (Guardianship of Ann S. (2009) 45 Cal.4th 1110, 1137-1138, fn. 20 [90 Cal.Rptr.3d 701, 202 P.3d 1089]) — clearly state "the filing of an abstract of judgment after death of the judgment debtor does not create a lien on estate property" (Cal. Law Revision Com. com., 16B West's Ann. Code Civ. Proc. (2009 ed.) foll. § 686.020, p. 224, italics added). Thus, because the Amended Abstract was recorded after Decedent's death, the probate court correctly found the abstract did not create a lien on estate assets.
"In 1982, California voters passed Proposition 8, also known as The Victims' Bill of Rights," which "added article I, section 28, subdivision (b) to the California Constitution." (People v. Giordano (2007) 42 Cal.4th 644, 652 [68 Cal.Rptr.3d 51, 170 P.3d 623] (Giordano).) This provision mandated that "[r]estitution shall be ordered from the convicted persons in every case, regardless of the sentence or disposition imposed, in which a crime victim suffers a loss, unless compelling and extraordinary reasons exist to the contrary." (Cal. Const., art. I, § 28, former subd. (b), as adopted June 8, 1982, italics added; see People v. Gross (2015) 238 Cal.App.4th 1313, 1318 [190 Cal.Rptr.3d 472] (Gross).)
In response, "`[t]he Legislature has enacted, and frequently amended, a bewildering array of responsive statutes.'" (Giordano, supra, 42 Cal.4th at p. 652.) For example, in 1983, the Legislature enacted section 1202.4, which, over the years, "consolidated much of the state's victim restitution scheme." (Giordano, at p. 653; see Luis M. v. Superior Court (2014) 59 Cal.4th 300, 304 [173 Cal.Rptr.3d 37, 326 P.3d 969].) As it read in 2008, section 1202.4
In 2008, voters passed Proposition 9, also known as Marsy's Law, which "provides for a broad spectrum of victims' rights, including restitution." (Gross, supra, 238 Cal.App.4th at p. 1317.)
The voter information materials regarding Marsy's Law include a four-page analysis by the Legislative Analyst. (Voter Information Guide, Gen. Elec. (Nov. 4, 2008) analysis of Prop. 9 by Legis. Analyst, pp. 58-61
Within the Legislative Analyst's two-page analysis of the fiscal impact of Marsy's Law, only the following two paragraphs address the measure's restitution provision:
Within the overall statutory scheme of restitution orders, several statutes directly address affirmative, active measures government entities may (or, in some instances, must) take to collect money from an offender who has been ordered to pay victim restitution or a restitution fine. For example, section 2085.5, subdivision (c) requires the Department of Corrections and Rehabilitation to deduct funds from a prisoner's wages and trust account deposits and to transfer those funds to the California Victim Compensation Board (Board) "for direct payment to the victim."
Similar provisions apply when a prisoner released from custody has not yet fully paid a restitution order or fine. The obligation to pay the unpaid balance survives the prisoner's release, and the designated local agency is authorized to "collect" the unpaid balance. (See §§ 2085.6, subds. (a) & (b), 2085.7, subds. (a) & (b).)
The Franchise Tax Board (FTB) is also authorized to "collect[]" delinquent restitution orders and fines. (Rev. & Tax. Code, § 19280, subd. (a).) Upon
The statutory scheme regarding restitution also addresses collection activities by courts. For example, section 1202.42 directs courts, "[u]pon entry of a restitution order," to "enter a separate order for income deduction" that will be stayed until the "agency ... responsible for collection of restitution" informs the court "that the defendant has failed to meet his or her obligation under the restitution order" without good cause. (§ 1202.42, subds. (a)-(b).) "The income deduction order shall direct a payer to deduct from all income due and payable to the defendant the amount required by the court to meet the defendant's obligation." (§ 1202.42, subd. (c).)
Courts are also authorized to grant prosecuting attorneys authority to use lien procedures, including writs of attachment of property, "[i]f the defendant has failed to meet his or her obligation under the restitution order and the defendant has not provided good cause for the failure...." (§ 1202.42, subd. (g).)
Finally, when a criminal defendant has deposited cash bail with the court, upon exoneration of the bail the court is authorized to "apply the money in satisfaction" of any amounts owing for restitution orders or fines before "refund[ing] the surplus, if any, to the defendant." (§ 1297.)
In addition, the Legislative Analyst's assessment of the fiscal impact of the restitution priority provision — a possible "decline" in "fine and penalty revenues" — supports our interpretation of the phrase "collected from." Were Joya's construction correct, the fiscal impact to the state could be dramatic — a victim entitled to restitution could theoretically assert priority over a state or county tax lien. The fact the Legislative Analyst did not address this potentially drastic impact indicates voters did not give the measure the meaning Joya attributes to it. (See, e.g., Valencia, supra, 3 Cal.5th at p. 365.) Moreover, the Legislative Analyst's fiscal analysis regarding the loss of fine and penalty revenues is consistent with the statutory restitution scheme, which now prioritizes victim restitution orders above restitution fines. (See, e.g., §§ 2085.5, subds. (j) ["If a prisoner has both a restitution fine and a restitution order from the sentencing court, the department shall collect the restitution order first...."], (k), (l) [designated local agencies collect restitution orders before fines], 1203.1d, subd. (b) [restitution victims have first priority for disbursement of restitution funds collected by the FTB at the request of a designated local agency].)
Affirmed. Appellant to pay respondent's costs on appeal.
McConnell, P. J., and Huffman, J., concurred.
Administrator described herself to the probate court as "a private professional fiduciary" licensed by the Professional Fiduciaries Bureau. She sought appointment as the administrator inasmuch as she was unable to locate any of Decedent's next of kin, and the county's public administrator declined to exercise priority. (See Prob. Code, § 8461 [specifying the order of priority for persons entitled to appointment as administrator].)
Probate Code section 9300, subdivision (a) states: "[A]fter the death of the decedent all money judgments against the decedent or against the personal representative on a claim against the decedent or estate are payable in the course of administration and are not enforceable against property in the estate of the decedent under the Enforcement of Judgments Law (Title 9 (commencing with Section 680.010) of Part 2 of the Code of Civil Procedure)."