Bagby

INTRODUCTION

Here we hold California law applies to collection actions in California courts, regardless of where the judgment debtor lives. We also hold that a surrendered life insurance policy is not necessarily exempt from collection. Respondent Douglas A. Bagby previously obtained a $5 million default judgment against appellant Joseph D. Davis. Bagby sought to collect by levying on two Individual Retirement Accounts (IRAs) belonging to Davis. Davis argued Bagby could not collect on those accounts because Davis is a resident of Florida and therefore certain exemptions under Florida law should apply. Davis also argued Bagby could not collect because the accounts were funded with the proceeds from a surrendered life insurance policy, held in a private retirement plan, both of which are exempt from collection under California law. The trial court applied California law and found Davis failed to carry his burden to prove any relevant exemption. We affirm.

FACTUAL AND PROCEDURAL BACKGROUND

I. Previous History

This is the fourth appeal this division has received in an ongoing dispute between two attorneys. 1 The underlying facts are as follows. In July 2013, Bagby was involved…