Third Party Claims

December 16, 2010

In Sanfer Sports Cars v. Shisler, the judgment creditor levied on several of the judgment debtor’s automobiles. In an effort to mask the ownership of the automobiles the judgment debtor had previously attempted to transfer title to each of the automobiles his parents, who then filed a third party claim.

This case is instructive for a host of reasons. The judgment creditor sought and received extensive post judgment orders to gain access to the cars, pink slips, keys to the car (mailed from Italy), orders for the fraudulent conveyees to appear for an examination, restraining orders, and an order setting the third party claim. These orders are extremely extensive in their scope and breath and serve as a virtual carousel of post-judgment remedies.

The irony is that the judgment debtor filed a petition under Chapter 13, and the schedules are likewise uploaded.  while the filing of the chapter 13 is unremarkable, and clearly the exercise of the judgment debtor’s constitutional rights, the judgment debtor sought to assert a claim of exemption of the vehicles in Schedule C. This comes as no surprise. As a matter of California law a fraudulent conveyor cannot unwind a fraudulent conveyance as the conveyance between the conveyor and the conveyee is absolute and only subject to attack in favor of a creditor.  Whether or not that exemption stands or fails is for another day.

Tune in.

The following order denied the third party claim of the judgment debtor’s parents and awarded the automobiles to the judgment creditor:

Sanfer Sports Cars v. Shisler Sister State Judgment and 3rd Party Claim – Part I

Sanfer Sports Cars v. Shisler – Third Party Claim Part II

OEX of Brian Shisler

OEX of Dee Shisler

OEX of Isabel Shisler

Sanfer Sports Cars v. Shisler – Third Party Claim Order