Regions Bank vs. BBS Trucking Inc

Sustained as to No. 1 (lacks foundation and personal knowledge, lacks authentication)

Overruled as to Nos. 2 and 3.

Plaintiff shall give notice.

309 Regions Bank Before the Court is a claim of exemption by BBS vs. BBS Trucking, Inc. (BBS) in which it claims that funds Trucking Inc held in Chase Account XXXX6930 are exempt pursuant to Code of Civil Procedure §704.225. A timely opposition has been filed by judgment creditor Regions Bank successor by merger to Ascentium Capital LLC (Regions). For the reasons set forth herein, the claim of exemption is DENIED.

Code Civ. Proc. § 703.580 sets forth the procedure for a hearing on a claim of exemption and provides: “(a) The claim of exemption and notice of opposition to the claim of exemption do not constitute an appearance pursuant to Section 1014. The power of the court over the exemption claimant is limited to determining the claim of exemption. (b) At a hearing under this section, the exemption claimant has the burden of proof. (c) The claim of exemption is deemed controverted by the notice of opposition to the claim of exemption and both shall be received in evidence.

If no other evidence is offered, the court, if satisfied that sufficient facts are shown by the claim of exemption (including the financial statement if one is required) and the notice of opposition, may make its determination thereon. If a claim of exemption asserts that money in a judgment debtor's deposit account is or was necessary for the support of the judgment debtor and the spouse and dependents of the judgment debtor as provided in Section 704.225, the court shall review the judgment debtor's financial statement and make findings thereon.

If not satisfied, the court may order the hearing continued

for the production of other evidence, oral or documentary. (d) At the conclusion of the hearing, the court shall determine by order whether or not the property is exempt in whole or in part. ...)

Here, the Notice of Filing Claim of Exemption, as well as the caption of the Claim of Exemption, shows the claimant as BBS Trucking, Inc. While BBS may have an interest in the funds in the account because it is the owner or co-owner of the Chase bank account, BBS is a separate entity and has no basis for claiming an exemption. The exemption under Section 704.225 does not apply to business accounts as the exemption is limited to the “judgment debtor’s deposit account” to the extent necessary for the support of the judgment debtor and his dependents. BBS has failed to meet its burden to establish the exemption under Section 704.225 as it has failed to establish the Chase Account 6930 is a personal account. The Claim of Exemption and Financial Statement do not say Chase Account 6930 is a personal account held Baljeet Singh or otherwise identify the name of the account holder.