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News & Press: Court Cases

Execution Sale

Monday, December 19, 2016  
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Lee v. Rich

The court reversed the trial court's order granting plaintiff-debtor's motion for restitution and cancellation of a sheriff's deed of sale. C.C.P Section 701.680(a) unequivocally states that an execution sale is "absolute and shall not be set aside for any reason." Because defendant was a third party purchaser at the sheriff's sale, and was not the judgment creditor, the remedies available for the judgment debtor are recovery of the proceeds of the sale under C.C.P Section 701.680(b), or to seek equitable redemption. Plaintiff is not, however, entitled to equitable redemption in this case because defendant was not guilty of unfairness, and did not manipulate the system or take undue advantage, and the record shows the property was not sold for a grossly inadequate price. The dissent argued that a judgment that is void due to lack of service on a debtor is void ab initio, and all subsequent actions, including a writ of execution and execution sale, have no legal force or effect.

Cal.App. 4th Dist., Div. 3 (G051838)  11/30/16

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