DEFAULT JUDGMENT IN FAVOR OF TRUSTEE AGAINST DEFENDANT 665 33RD STREET LLC

BEVERLY REID O'CONNELL, District Judge.

On July 1, 2014, at 10:00 a.m., in the above captioned adversary proceeding (the "Adversary Proceeding") pending before United States Bankruptcy Judge Barry Russell (the "Bankruptcy Court"), the Bankruptcy Court heard and considered the Motion for Entry of Default Judgment Against Defendant 665 33rd Street LLC (the "Motion") (docket no. 57), filed by plaintiff Brad D. Krasnoff, the Chapter 7 trustee ("Plaintiff" or the "Trustee") for the bankruptcy estate of William Robert Norrie (the "Debtor"). The Bankruptcy Court also considered the opposition of William Robert Norrie (the "Debtor") to the Motion (docket no. 61), Marilyn Norrie's opposition to the Motion (docket no. 62), and the Trustee's Reply in support of the Motion (docket no. 64), and the Ex Parte Application of John Norrie as trustee of "The 561 Brooks Avenue Trust Dated March 14, 2007" for Continuance of the Hearing on the Motion (docket no. 66). Eric P. Israel of Danning, Gill, Diamond & Kollitz, LLP, appeared on behalf of the Trustee. Elizabeth A. LaRocque of Goe & Forsythe LLP, appeared on behalf of the Debtor and the Company. Alan Broidy appeared on behalf of Marilyn Norrie, individually and as the guardian of her minor children, the purported beneficiaries of The 561 Brooks Avenue Trust. Michael D. Kwasigroch appeared on behalf of John Norrie as the purported trustee of The 561 Brooks Avenue Trust Dated March 14, 2007. Paul Burns appeared on behalf of creditors Kelly T. Mallen and John M. Pulos. 665 33rd Street LLC (the "Company") is in default and did not respond to the Motion.

The Bankruptcy Court having considered all of the evidence submitted in support of and in opposition to the Motion, the papers on file in the Adversary Proceeding and in the Debtor's Bankruptcy Case, the Bankruptcy Court having taken judicial notice of various facts, having considered the representations and arguments of counsel at the hearing on the Motion, and good cause appearing therefor, the Bankruptcy by order entered on August 5, 2014 (adv. docket no. 79) made recommendations that the District Court enter Proposed Findings of Fact and Conclusions of Law (the "Proposed Findings") in support of a default judgment (adv. docket no. 80) in connection with the Motion in support of a final judgment in the Adversary Proceeding against the Company.

The matter was assigned to the United States District Court for the Central District of California as case no. CV 14-06211 BRO, the Honorable Beverly Reid O'Connell, United States District Judge, presiding (the "District Court"). The District Court having reviewed the Motion and the record de novo including the Proposed Findings, having adopted the Proposed Findings by its minute order entered on September 2, 2014 (district court docket no. 5) and having entered its own Findings of Fact and Conclusions of Law contemporaneously herewith, and for good cause appearing, it is

ORDERED, ADJUDGED AND DECREED AS FOLLOWS:

1. The Motion is granted in its entirety.

2. Judgment in favor of the Trustee and against the Company on the Trustee's First Claim for Relief.

3. The transfer of the real property commonly known as 1325 Cabrillo Ave, Venice, California, assessor's parcel number 4238-004-008 (the "Property") from the Debtor in favor of 665 W. 33rd Street, LLC (the "Company") as reflected in a grant deed recorded on or about January 9, 2008 with the Los Angeles County Recorder as instrument no. 20080045643, is avoided. The legal description of the Property is attached hereto as Exhibit "A".

4. The Property is recovered by the Trustee.

5. Entry of a final judgment on the Adversary Proceeding against the Company is appropriate pursuant to Fed. R. Civ. P. 54(b) because it is an ultimate disposition of the Trustee's claims against the Company in the Adversary Proceeding, it will resolve all issues with respect to title to the Property, and there is no just reason for delay.

IT IS SO ORDERED.

EXHIBIT "A"

(Legal Description)

LEGAL DESCRIPTION

Real property in the City of Los Angeles, County of Los Angeles, State of California, described as follows:

LOT(S) 8, 9 AND 10 IN BLOCK 16, OF VENICE OF AMERICA TRACT, IN THE CITY OF LOS ANGELES, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 6 PAGE(S) 126 AND 127 OF MISCELLANEOUS RECORDS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY.

APN: 4238-004-008