Yolanda’s, Inc. v. Kahl & Goveia Commercial Real Estate—Expanding a Creditor’s Post-Judgment Examination of a Non-Debtor Third Party

Gary B. Rudolph

After obtaining graduate/ undergraduate degrees from American University, Washington D.C. I moved to San Diego, California graduating from California Western School of Law in 1981. I am a shareholder at Sullivan Hill Lewin Rez & Engel, APLC specializing in representing creditors, commercial debtors, trustees, receivers, and fiduciaries.

When a judgment creditor seeks to examine a non-debtor third party regarding the location and/ or transfer of assets of the judgment debtor, what are the parameters for the examination? The case of Yolanda’s, Inc. v. Kahl & Goevia Commercial Real Estate¹ is factually straight forward; however, its holding implies a more complicated answer to the question, and sets boundaries for the examination of a non-debtor third party by a judgment creditor that arguably exceed those specified in the California Code of Civil Procedure.

The starting point for this analysis is California Code of Civil Procedure section 108.120, which provides that a judgment creditor may examine a third party who has possession or control of property in which the judgment debtor has an interest or is indebted to the judgment debtor in amount exceeding $250.²