Tuesday, May 15, 2018
Integrated Lender Services v. County of Los Angeles
Cal.App. 2nd Dist. (B281135) 4/27/18
There were surplus proceeds after a deed of trust was foreclosed on property once owned by a convicted fraudster. There were two claims to the funds: 1) the County of Los Angeles, which had been awarded criminal restitution against the fraudster, and claimed the right to collect the restitution from the property by means of a lis pendens and temporary restraining order recorded in the criminal prosecution; and 2) several trusts, whose interests in the property were both junior to that of the foreclosing trustee and had post-dated the criminal lis pendens. The court affirmed the trial court's award of the surplus proceeds to the trusts, holding that the lis pendens was inadequate to give the County any interest in the property because the criminal court had ordered restitution but had not ordered the property levied upon to satisfy the restitution award.