T hi s di s pos i t i on i s notappr opr i a t e f orpubl i c a t i on a nd i s notpr e c e de nt * e xc e pta s pr ovi de d by N i nth C i r c ui tR ul e 36- 3. 1 NOT F OR P UB L I CAT I ON UN I TE D STATE S C OU RT OF APPE ALS F O R T H E N IN T H C IR C U IT K O N I N K LI J K E PH I LI PS E L E C T R O N I C S , N . V . , aN e the r l a nds c orpor a t i on, P l ai nt i ff

- A pp el l ee , v. K X D T E C H N O L O G Y , I N C .; e t a l., D efen d an t s, a nd J I N G Y I L U O , a kaJ a m e s L uo, D e f

e n d a n t - A p p e lla n t, WI L L A L I U, R e a l- p a r ty - in - in te r e s t - A p p e lla n t. N o. 08- 55931 D. C . No . 2 : 0 7 - c v - 0 6 1 1 7 - AH S ME MOR AN DU M *

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r o m th e U n ite d S ta te s D is tr ic t C o u r t f o rth e C e n tr a l D is tr ic t o f C a lif o rn ia P a tr i c k J . W a l s h, M a gi s tr a t e J udge , P r e s i di ng 

# FI LED NO V 20 2009 M OLLY C. DW Y ER, CLERK U . S. C O U R T OF APPE ALST he H onor abl e L oui s H . P ol l a k, S e ni orU ni t e d S t a t e s D i s tr i c tJ udge ** f orthe E a s t e rn D i s tr i c tof P e nns y l va ni a , s i tt i ng by de s i gna t i on.

2 A r gue d a nd S ubm i tt e d O c t obe r5, 2009

P a s a d e n a , C a lif

o rn ia B e f o r e : K L E I N F E L D a n d T A L L M A N , C ir c u it J u d g e s , a n d P O L L A K , D i stri ct ** Judg e. A ppe l l a nt s , J i ngy i L uo a nd W i l l aL i u, appe a l the de ni a l of a$75, 000 h o m est ead ex em p t i o n o n th ei r h o u se, w h i ch M ag i strat e Ju d g e P atri ck J. W al sh o rd ered t o b e so l d fo r th e p u rp o se o f sat i sfyi n g a ci v i l co n t em p tj u d g m en tag ai n st L uo fr om the D i stri ctof N evada.

M a gi s tr a t e J udge W a l s h’ s or de rs t a t e d tha tahom e s t e a d e xe m pt i on w a s not re corded before the j ud gm entl i en att ac hed and , there fore , the ho m es t ea d e xe m pt i on w a s i nva l i d. T he or de rs t a t e s tha tthe j udgm e ntl i e n a tt a c he d w he n L uo w a s s e rve d w i th not i c e of ade bt or ’ s e xa m i na t i on. O n the ba s i s of

the c urr e ntr e c or d, w e f i nd tha tthe j udgm e ntl i e n w a s not s upe r i ort o the hom e s t e a d e xe m pt i on. W i l l aL i u, L uo’ s w i f e a tthe t i m e of

the or de r , r e c or de d ahom e s t e a d de c l a r a t i on on O c t obe r9, 2007. R e c or di ng a hom e s t e a d de c l a r a t i on pr ot e c t s as pe c i f i e d a m ounti n the e ve ntof avol unt a ry or f o r c e d s a le o f

ah o m e . See C AL . C IV . P ROC . C OD E § 704. 910 e t s e q. ( W e s t 2 0 0 9 ) .B a s e d on the c urr e ntr e c or d i tc a nnotbe de t e rm i ne d w i th c e r t a i nty w he n, or 1 i f , a n abs tr a c tof

j udgm e ntw a s r e c or de d. T he r e c or d c ont a i ns a n abs tr a c tof j ud gm entw hi ch i s dat ed M ar ch 14 , 20 08 , and st at es “ W H E N R E C O R D E D M A IL T O ” ap p e lle e ’s c o u n s e l. T h is d o c u m e n t, if it is th e r e c o r d e d ab s tr a c t o f ju d g m e n t, i n d i cat es th ata j u d g m en tl i en w o u l d n o th av e att ach ed t o th e p ro p erty u n t i l atl east M ar ch 14 , 20 08 , m ore than fi ve m on ths subsequentt o the re cordi ng of a h o m e s te a d d e c la r a tio n b y L iu . 3 U nd erC al i forni a l aw , a j ud gm entl i en do es no tatt ac h t o rea l prop erty unt i l an ab s tr a c t o f

th e ju d g m e n t h a s b e e n r e c o r d e d . C AL . C IV . P ROC . C OD E § 6 97 . 31 0(a) ( W e s t 2 0 0 9 ) ; T

as s one v . T

ov ar , 28 C a l . A pp. 4th 765, 769 ( C a l . C t . A pp. 1994) ( s t a t i ng tha taj udgm e nt“ a s a n unr e c or de d doc um e nt ” ha s “ no l e ga l e f f e c ton the pr ope r ty ” ) . I n a ddi t i on, the pr ope r ty m a y be s ubj e c tt o a n a ut om a t i c hom e s t e a d, w hi c h appl i e s i n the e ve ntof af or c e d s a l e of

apr i m a ry dw e l l i ng w i thoutthe p r e r e q u is ite o f

f ilin g ah o m e s te a d d e c la r a tio n . See C AL . C IV . P ROC . C OD E § 704. 710 et

se q . (W es t20 09 ). C on tra ryt o the M agi stra t e Jud ge’ s order , the se rvi ce of not i c e f orade bt or ’ s e xa m i na t i on di d nota f f e c tthe appe l l a nt s ’ e nt i t l e m e ntt o a hom e s t e a d e xe m pt i on be c aus e aj udgm e ntl i e n doe s nota tt a c h unt i l a n abs tr a c tof j udgm e nti s r e c or de d. 1

A p p e lle e P h ilip s a r g u e d th a t f r au d u le n t c o n d u c t b y L u o a n d L iu s h o u ld r e nde rthe m i ne l i gi bl e t o c l a i m ahom e s t e a d e xe m pt i on. B e c aus e the r e c or d l a c ks su ffi ci en tev i d en ce o f th e al l eg ed frau d u l en tco n d u ct , w e w i l l n o tad d ress P h i l i p s’4

a r g u m e n ts , w h ic h w e r e f ir s t r a is e d o n ap p e a l. Se e Cr of ton v . R oe , 170 F . 3d 957, 96 1 (9th C i r. 19 99 ) ( “ B ec ause w e genera l l y do n otconsi der a rgum ent s thatw er e n o t r a is e d b e lo w a n d b e c au s e th is n e w is s u e is n o t p u r e ly le g a l, w e r e f u s e to e n te r ta in it.” ) . T h e Ma g i s tr a t e J u d g e ’ s o r d e rl a c k s ab a s i s i n th e r e c o r d a n d C a l i f o rn i al a w, and fai l ed t o p rovi de suff i ci entgrou nd s f

or i t s deni al of the cl ai m of ho m es t ea d e xe m pt i on. R EVER SED a nd R EM A N D ED .