Attorney Julie R. Woods wrote the following case alert for the State Bar of California Trusts and Estates Section regarding FirstMerit Bank, N.A. v. Diana L. Reese. Julie is on the committee for finding and disseminating new case law all members of the Trusts and Estates Section of the State Bar of California. The case alert may also be found on the website for the State Bar of California under Trusts and Estates Section, New Case Alerts.

FirstMerit Bank, N.A. v. Diana L. Reese
Filed November 19, 2015, Fourth District, Div. Two
Cite as E061480

FirstMerit Bank sought to enforce a money judgment against Reese by applying for an order under Code Civ. Proc., § 708.510 assigning Reese’s interest in two trusts to FirstMerit, and an order restraining her from otherwise disposing of her right to payment under the trusts. The trial court denied the motion because a debtor’s interest in a trust is specifically not subject to such an assignment order.

The court of appeal affirmed. The only means by which a judgment creditor may enforce a money judgment against a beneficiary’s interest in a trust is by a lien under Code Civ. Proc., § 709.010. However, such an order must be sought from the court with jurisdiction over the trust. In this case the trusts were administered in Ohio. Therefore, even if FirstMerit had utilized the correct procedure, the California court had no jurisdiction to impose such a lien. http://www.courts.ca.gov/opinions/documents/E061480.PDF