STIPULATION AND REQUEST FOR ORDER REGARDING LIEN PRIORITY
PHYLLIS J. HAMILTON, District Judge.
Plaintiffs, Gerald Ornstein; John P. Hunter; IRA Services Trust Company CFBO Joan Faye Cantrock IRA; Norman C. Schultz, Trustee of The Norman C. Schultz Trust under Declaration of Trust dated 8/30/2012; Richard Gonerko and Diana Ferrari, Trustees of the Exempt Trust Share for Richard Gonerko created under the Marie Eugenia Zonn Trust Agreement dated October 9, 1990 FBO Richard Gonerko; J. Robert Taylor and Donna C. Taylor, Trustees of 2005 Taylor Family Trust; Eva Hindahl, trustee of The Eva Hindahl, Separate Property Living Trust Dated 06/30/2014; Robert J. Accinelli, trustee of the Robert John Accinelli Inter Vivos Trust UA 06/15/1994; Gerald C. Vanoli and Lorraine A. Vanoli; Theodore J. Gradman Ph. D. 401K Plan (collectively, "Plaintiffs"), Defendant, The United States of America ("Untied States"), Defendant, Karen Lum ("Lum"), and Defendant, Legal Solutions Corporation ("LSC"), by and through their respective attorneys, hereby stipulate and agree as follows:
THE SUBJECT PROPERTY
The real property which is the subject of this action is located at 448 15th Avenue, San Francisco, California 94118 ("Subject Property"), APN: Block 1530, Lot 020, and which is legally described in Exhibit A attached hereto and incorporated herein by reference.
CLAIMS OF PLAINTIFFS
Plaintiffs are the beneficiaries of a Deed of Trust executed by trustors Gibson T. Canites, Rose Liang-Canites, and Aaren Canites (collectively, the "Canites Defendants"), which was recorded against the Subject Property on May 19, 2016 in the Official Records of the San Francisco Assessor-Recorder as Document No. 2016-K246357-00 and which was given to secure a loan in the principal balance of $1,600,000. The proceeds of Plaintiffs' $1,600,000 loan were, among other things, used to pay off existing senior deeds of trust held by creditors Long Beach Mortgage Company, Sequoia Funding Mortgage Capital, Inc., Karen Lum, and Gary Bolden, as well as property tax and other assessments against the Subject Property.
CLAIMS OF DEFENDANT LEGAL SOLUTIONS CORPORATION
On May 25, 2010, LSC recorded an abstract of judgment against Rose Liang-Canites and Gibson T. Canites in the amount of $65,996.05 in the Official Records of the San Francisco Assessor-Recorder as Document No. 2010-1973745-00. On February 11, 2016, LSC recorded an amended judgment lien in the amount of $98,371.17 in the Official Records of the San Francisco Assessor-Recorder as Document No. 2016-K200115-00
CLAIMS OF DEFENDANT KAREN LUM
Karen Lum is the beneficiary three junior deeds of trust recorded against the Subject Property to secure loans made by her to trustor Aaren R. Canites: the first in the principal amount of $180,000 recorded on May 27, 2016, in the Official Records of the San Francisco Assessor-Recorder as Document No. 2016-K251436-00; the second in the principal amount of $112,000 recorded on April 12, 2017, in the Official Records of the San Francisco Assessor-Recorder as Document No. 2017-K432127-00; the third in the principal amount of $52,000 recorded on May 16, 2017, in the Official Records of the San Francisco Assessor-Recorder as Document No. 2017-K450799-00. Lum was also the beneficiary of a deed of trust secured against the Subject Property recorded on June 25, 2015 in the Official Records of the San Francisco Assessor-Recorder as Document No. 2015-K082494-00, which was paid off from the proceeds of Plaintiff's loan and was reconveyed.
CLAIMS OF DEFENDANT THE UNITED STATES
On the following dates, duly authorized delegates of the Secretary of the Treasury made assessments against Gibson T. Canites, for unpaid federal income taxes for the tax years 2004, 2009, 2010, 2011, 2012, 2014, 2015, 2016, and 2017, creating federal tax liens:
Tax Year Assessment Date Accrued Balance Through Date Notice of Tax Lien
June 30, 2018 Recorded
2004 06/23/2008 $ 3,003.26 02/06/2009
(San Francisco County)
2009 01/14/2013 $ 7,811.75 10/02/2013
(San Francisco County)
2010 08/26/2013 $ 46,161.09 12/08/2015
(San Francisco County)
2011 06/03/2013 $ 66,758.73 10/02/2013
(San Francisco County)
2012 07/29/2013 $ 61,576.52 12/08/2015
(San Francisco County)
The federal tax liens attach to the Subject Property.
STIPULATIONS
Wherefore, Plaintiffs, the IRS, LSC, and Karen Lum, hereby stipulate and agree to the following schedule of priority, which corresponds to the above-listed stipulations:
Priority Lienholder Date of Lien Accrued Balance
1 Plaintiffs 10/18/2002 $409,708.76 (plus interest from 05/19/2016)
2 IRS 2/6/2009 $3,003.26 (plus interest from 06/30/2018)
(for 2004)
3 LSC 5/25/2010 $98,371.17 (plus interest from 02/11/2016)
4 IRS 10/02/2013 $74,570.48 (plus interest from 06/30/2018)
(for 2009: 2011)
5 Plaintiffs 11/21/2014 $609,413.80 (plus interest from 05/19/2016)
6 Plaintiffs 6/25/2015 $111,309.59 (plus interest from 05/19/2016)
7 IRS 12/8/2015 $107,740.61 (plus interest from 06/30/2018)
(for 2010; 2012)
8 Plaintiffs 1/11/2016 $215,000 (plus interest from 05/19/2016)
9 Plaintiffs 5/19/2016 $254,567.85 (plus interest from 05/19/2016)
10 Karen Lum 5/27/2016 $180,000 (plus interest from 05/27/2016)
11 Karen Lum 04/02/2017 $112,000 (plus interest from 04/02/2017)
12 Karen Lum 5/16/2017 $52,000 (plus interest from 05/16/2017)
Defendants IRS, LSC, and Karen Lum do not oppose judicial foreclosure or a stipulated private sale of the Subject Property, upon conditions agreed to by defendants, should Plaintiff prevail in this action. However, any proceeds from the sale of the Subject Property, as among Plaintiffs and defendants IRS, LSC, and Karen Lum will be used to pay off the liens, together with interest as described in the chart above, until such funds are exhausted. Prior to filing an application for fmal order of the Court, Plaintiffs agree to provide an accounting to the parties to this Stipulation setting forth the full disposition of the proceeds from the sale of the Subject Property.
The parties to this Stipulation agree to bear their own costs and attorney's fees, excepting the costs incurred in selling the Subject Property, which are to be reimbursed from the proceeds of the sale of the Subject Property prior to satisfying the outstanding liens on the property.
Upon execution of this Stipulation by both parties and entry of the Order by the Court, the IRS, LSC, and Karen Lum shall not be required to appear at future hearings in this litigation and shall be treated as a non-party for all purposes including discovery purposes, unless another party disputes priority or upon order of the Court. The parties so agree and request an Order confirming the foregoing.
IT IS SO ORDERED.
