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SUSANNA P. STARCEVIC et al., Plaintiffs and Respondents, v. PENTECH FINANCIAL SERVICES, INC., Defendant and Appellant EDWARD P. ROSKI, JR., as Trustee, etc., Defendant and Respondent.

DO, J.

APPEAL from a judgment of the Superior Court of San Diego County No. 37-2013- 00076632-CU-OR-CTL, Katherine A. Bacal, Judge. Affirmed.

Rossi Domingue and John F. Domingue for Defendant and Appellant.

M. Richardson Lynn, Jr. for Plaintiffs and Respondents.

The Reimann Law Group and David W. Reimann for Defendant and Respondent.

DO, J.

INTRODUCTION

The issue on this appeal is straightforward: In a partition action, does a judgment creditor who was deemed the priority lien holder lose that status if it does not renew its judgment? For reasons we will explain, we conclude that it does.

Appellant Pentech Financial Services, Inc. (Pentech) and Respondent Edward P. Roski, Jr., Trustee of the Roski Community Property Trust Dated November 1, 1987 (Roski), are two of several lien holder defendants in the underlying partition action involving four properties. Pentech obtained the judgment underlying its lien on March 5, 2008. At the first phase of a bifurcated trial in November 2015, the trial court adopted the parties' stipulation to determine lien priority by the date of recording the judgment lien with the San Diego County Recorder's Office (Recorder's Office). In accordance with that stipulation, the trial court determined that Pentech was the priority lien holder.

In March 2017, the trial court adopted the parties' stipulated interlocutory judgment, wherein the parties stipulated that “satisfaction of any judgment or tax lien shall be prioritized by date of recording of such lien with the [Recorder's Office].” Pentech's judgment expired in March 2018, by operation of law, when it failed to renew the judgment within the prescribed 10-year period. By then, only one of the four subject properties had been sold. At the second phase of the bifurcated trial in January 2019, the trial court determined that Pentech lost its priority status because it no longer had a valid, enforceable judgment. The court subsequently awarded Roski, as the new priority lien holder, its proportional share of the funds-a sum of $505, 957.45-from the sales of all four properties.

Pentech admits that it did not renew its judgment. Nonetheless, Pentech contends on appeal that the trial court's initial determination of priority lien status was final and non-reviewable. In the alternative, Pentech seeks modification of the judgment to entitle Pentech to receive a portion of the sale of the one property that sold before its judgment expired. Finally, Pentech argues the judgment should be reversed and remanded so that the trial court could consider arguments asserted by Pentech for the first time in its objections to a proposed statement of decision. Because these contentions lack merit, we affirm.

FACTUAL AND PROCEDURAL BACKGROUND

I.

The Judgment Liens

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Starcevic v. Pentech Financial Servs.
(Jul 7, 2021)