Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-caed-2_07-cv-00774/USCOURTS-caed-2_07-cv-00774-3/pdf.json

Nature of Suit Code: 890
Nature of Suit: Other Statutory Actions
Cause of Action: 28:1335 Interpleader Action

---

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

Jana Logan 171152

KIRBY & McGUINN, A P.C.

600 B Street, Suite 1950

San Diego, California 92101-4515

Telephone: (619) 398-3354 Facsimile: (619) 398-3355

Attorneys for Plaintiff

CALIFORNIA RECONVEYANCE COMPANY

UNITED STATES DISTRICT COURT

EASTERN DISTRICT OF CALIFORNIA

SACRAMENTO DIVISION

CALIFORNIA RECONVEYANCE

COMPANY, a California corporation

Plaintiff(s)

v.

UNITED STATES OF AMERICA,

acting through the Internal Revenue

Service, et al.

Defendant(s)

)

)

)

)

)

)

)

)

)

)

)

)

)

Case No. 2:07-CV-00774-WBS-EFB

STIPULATION FOR JUDGMENT FOR

DISCHARGE OF TRUSTEE,

CALIFORNIA RECONVEYANCE

COMPANY, PAYMENT OF LEGAL FEES

TO PLAINTIFF’S COUNSEL; RELEASE

OF SURPLUS FUNDS TO RESPONDING

DEFENDANTS; AND ORDER THEREON

Judge: Hon. William B. Shubb

Ctrm:

Magistrate

Judge: Hon. Edmund F. Brennan

Ctrm.: 25

This Stipulation is entered into by and between Plaintiff, California Reconveyance

Company, a California corporation (“CRC”), through its counsel of record, Kirby &

McGuinn, A P.C., by Jana Logan, and defendants United States of America acting

through the Internal Revenue Service., through its attorney of record, McGregor W.

Scott, United States Attorney, by Justin S. Kim, Trial Attorney, Tax Division, United

States Department of Justice and the state of California, Franchise Tax Board, through

its attorneys of record, Edmund G. Brown, Jr., Attorney General, by Amy J. Winn,

Deputy Attorney General.

The parties do hereby stipulate and agree as follows:

1. Plaintiff is, and at all times mentioned herein was, the successor trustee

Case 2:07-cv-00774-WBS-EFB Document 48 Filed 11/06/07 Page 1 of 6
1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

California Reconveyance Company v USA, et al. Case No.2:07-CV-00774-WBS-EFB 

STIPULATION FOR JUDGMENT FOR DISCHARGE OF TRUSTEE, CALIFORNIA RECONVEYANCE

COMPANY, PAYMENT OF LEGAL FEES TO PLAINTIFF’S COUNSEL; RELEASE OF SURPLUS FUNDS TO

RESPONDING DEFENDANTS; AND ORDER THEREON Page No. 2

under that certain deed of trust executed by David E. Rinker and Judith Ann Rinker,

husband and wife as joint tenants (collectively “Rinker”). The Rinkers’ executed a deed

of trust against 21251 River Bluff Drive, Anderson, California 96007 (the “Property”)

originally in favor of Long Beach Mortgage Company dba Financing USA, as

beneficiary, dated December 22, 1998, and recorded on January 6, 1999 as Instrument

No. 000398 in the Official Records of Shasta County, State of California (the “Trust

Deed”). The Trust Deed secured a promissory note in the original sum of $264,000.00

dated December 22, 1998 in favor of Long Beach Mortgage Company, dba Financing

USA (the “Note”). 

2. On or about April 11, 2005, pursuant to its power of sale under the Trust

Deed, Plaintiff conducted a non-judicial foreclosure sale of the Property. The Property

was sold to the highest bidder, a third party, and resulted in surplus funds in the amount

of $111,980.83. 

3. Defendants the United States of America, acting through the Internal

Revenue Service (“IRS”) and State of California Franchise Tax Board (“FTB”) answered

the complaint on July 2, 2007 and June 4, 2007 respectively.

4. Defendant Donald Park, an individual, failed to answer, file any pleadings

or otherwise move in response to the Complaint with the time during which defendant

Donald Park was to answer or otherwise plead. Default by Clerk as to Donald Park, an

individual, was entered on June 7, 2007 [Docket No. 24]. 

5. Defendant KI Investments, LLP failed to answer, file any pleadings or

otherwise move in response to the Complaint with the time during which defendant KI

Investments, LLP to answer or otherwise plead. Default by Clerk as to KI Investments,

LLP was entered on June 7, 2007 [Docket No. 24].

6. Defendant Raymond P. Lohmeier, an individual, failed to answer, file any

pleadings or otherwise move in response to the Complaint with the time during which

defendant Raymond P. Lohmeier, an individual, was to answer or otherwise plead.

Case 2:07-cv-00774-WBS-EFB Document 48 Filed 11/06/07 Page 2 of 6
1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

California Reconveyance Company v USA, et al. Case No.2:07-CV-00774-WBS-EFB 

STIPULATION FOR JUDGMENT FOR DISCHARGE OF TRUSTEE, CALIFORNIA RECONVEYANCE

COMPANY, PAYMENT OF LEGAL FEES TO PLAINTIFF’S COUNSEL; RELEASE OF SURPLUS FUNDS TO

RESPONDING DEFENDANTS; AND ORDER THEREON Page No. 3

Default by Clerk as to Raymond P. Lohmeier was entered on June 7, 2007 [Docket No.

24]. 

7. Defendant Northern California Collection Service, Inc. of Sacramento

signed a Disclaimer of Interest which was filed with this Court on May 16, 2007 [Docket

No. 12]. 

8. Defendant Capital Associates Inc. signed a Disclaimer of Interest which was

filed with this Court on May 16, 2007 [Docket No. 13]. 

9. Defendant Lake California Property Owners Association, Inc. signed a

Disclaimer of Interest which was filed with this Court on June 14, 2007 [Docket No. 27].

10. On or about July 30, 2007, plaintiff moved for entry of default judgment

against non-responding defendants KI Investments, LLC, Donald Park and Raymond P.

Lohmeier.

11. On October 30, 2007 the Court entered default judgment against defendants

KI Investments, LLC, Donald Park, an individual and Raymond P. Lohmeier, an

individual which provided that these defendants are not entitled to any portion of the

surplus Funds and which provided plaintiff with a discharge of all liability as to the

defaulted defendants with respect to the Surplus Funds. This Stipulation makes no

provisions for KI Investments, LLC, Donald Park, an individual and Raymond P.

Lohmeier, an individual.

12. David E. Rinker and Judith Ann Rinker are the former owners of the real

property that was foreclosed upon. They are also delinquent taxpayers. The Rinkers were

indebted to the IRS for unpaid income taxes. Notices of Federal tax liens were recorded

on February 1, 2000, July 31, 2000, October 8, 2002 and January 9, 2003 . The IRS filed

claims for $74,897.12 and $136,218.37.

13. David E. Rinker and Judith Ann Rinker were delinquent in their payment

of taxes to the State of California. Notice of State tax lien was recorded on January 19,

2000. The FTB filed a claim for $15,260.00.

Case 2:07-cv-00774-WBS-EFB Document 48 Filed 11/06/07 Page 3 of 6
1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

California Reconveyance Company v USA, et al. Case No.2:07-CV-00774-WBS-EFB 

STIPULATION FOR JUDGMENT FOR DISCHARGE OF TRUSTEE, CALIFORNIA RECONVEYANCE

COMPANY, PAYMENT OF LEGAL FEES TO PLAINTIFF’S COUNSEL; RELEASE OF SURPLUS FUNDS TO

RESPONDING DEFENDANTS; AND ORDER THEREON Page No. 4

14. The remaining parties, the IRS and the FTB are continuing to litigate their

respective claims. Plaintiff CRC claims an interest in the surplus funds to the extend of

its attorneys fees and costs in handling the matter. 

15. The remaining parties have reached an agreement as to the disbursement of

the remaining surplus funds.

16. CRC has been required to retain attorneys to file the instant interpleader

action to determine which claimant is entitled to the surplus funds.

17. Pursuant to California Code of Civil Procedure section 386.5, CRC is

entitled to an award of attorneys’ fees from the surplus funds interpled with the court.

18. Rather than incur the expense of a motion for attorneys’ fees, and because

all claimants to the surplus funds are the only claimants to the surplus funds, the parties

hereby stipulate and agree that CRC’s attorneys, Kirby & McGuinn, A P.C., shall receive

the sum of $9,407.31 as and for all legal fees and costs for representing the plaintiff in

this matter.

19. Surplus funds in the amount of $96,720.83, shall be paid to the Internal

Revenue Service and the remaining surplus funds in the amount of $5,852.69 shall be

paid to the State of California - Franchise Tax Board.

20. With the exception of the payment of attorneys fees and costs to California

Reconveyance Company, each side to bear their own attorney’s fees and costs.

21. Because CRC has the surplus funds in this interpleader action and the

remaining surplus funds are being distributed to the remaining claimants, CRC is entitled

to a discharge of all liability with respect to the surplus funds in this matter. CRC and its

attorneys shall not be required to participate as a party in the action after entry of the

order approving this stipulation.

22. All counsel signing on behalf of a client warrant to the other parties that he

or she has authority to bind the parties represented and has obtained the requisite

authority to execute this Stipulation on behalf of the said person(s).

Case 2:07-cv-00774-WBS-EFB Document 48 Filed 11/06/07 Page 4 of 6
1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

California Reconveyance Company v USA, et al. Case No.2:07-CV-00774-WBS-EFB 

STIPULATION FOR JUDGMENT FOR DISCHARGE OF TRUSTEE, CALIFORNIA RECONVEYANCE

COMPANY, PAYMENT OF LEGAL FEES TO PLAINTIFF’S COUNSEL; RELEASE OF SURPLUS FUNDS TO

RESPONDING DEFENDANTS; AND ORDER THEREON Page No. 5

23. This stipulation may be executed in counterparts, each of which shall be

deemed an original.

IT IS SO STIPULATED.

Dated: 11/5/07 KIRBY & McGUINN, A P.C.

By: /s/ 

 JANA LOGAN

Attorneys for Plaintiff California Reconveyance

Company

Dated: 10/29/07 McGREGOR W. SCOTT

United States Attorney

By: /s/ 

 JUSTIN S. KIM

 Trial Attorney, Tax Division

 U.S. Department of Justice

Attorneys for Defendant the United States of

America

Dated: 10/28/07 

By: /s/ 

 AMY J. WINN

 Deputy Attorney General 

Attorneys for Defendant California Franchise

Tax Board

* * * * * * * * * *

ORDER

The Court, having reviewed the stipulation of the parties and good cause appearing

therefor, orders as follows:

1. California Reconveyance Company, a California corporation, the former

trustee with respect to the foreclosure of the real property located at 21251 River Bluff

Drive, Anderson, California 96007 (the “Property”), is hereby released and discharged

of all liability with respect to the surplus funds generated from the sale of the Property

Case 2:07-cv-00774-WBS-EFB Document 48 Filed 11/06/07 Page 5 of 6
1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

California Reconveyance Company v USA, et al. Case No.2:07-CV-00774-WBS-EFB 

STIPULATION FOR JUDGMENT FOR DISCHARGE OF TRUSTEE, CALIFORNIA RECONVEYANCE

COMPANY, PAYMENT OF LEGAL FEES TO PLAINTIFF’S COUNSEL; RELEASE OF SURPLUS FUNDS TO

RESPONDING DEFENDANTS; AND ORDER THEREON Page No. 6

conducted on April 11, 2005.

2. Of the remaining surplus funds in the sum of $111,980.83 from the

foreclosure sale of the Property, the sum of $9,407.31 shall be distributed to California

Reconveyance Company’s attorneys, Kirby & McGuinn, A P.C., 600 B Street, Suite

1950, San Diego, California 92101.

3. Surplus funds in the amount of $96,720.83, shall be paid to the Internal

Revenue Service and the remaining surplus funds in the amount of $5,852.69 shall be

paid to the State of California - Franchise Tax Board.

4. Upon entry of this Order, this case shall be dismissed with prejudice.

IT IS SO ORDERED.

Dated: November 6, 2007

Case 2:07-cv-00774-WBS-EFB Document 48 Filed 11/06/07 Page 6 of 6