Hepner

Plaintiffs and appellants Gershon W. Hepner (Hepner) and Linda Hepner (Mrs. Hepner) (collectively, the Hepners) appeal a judgment denying their petition for writ of mandate wherein they sought to overturn certain action taken by defendant and respondent Franchise Tax Board of the State of California (the Board).

The essential issue presented is whether, when the Board seeks to collect taxes by directing a notice to withhold to a person or entity in possession of monies owed to a taxpayer, the taxpayer may claim the exemptions available to a judgment debtor.

Because the statutory scheme does not provide for exemptions in such a situation, the trial court properly denied the petition. The judgment therefore is affirmed.

Factual and Procedural Background

1. Facts.

Hepner prevailed against UNUM Life Insurance Company of America (UNUM) (not a party to this appeal) in an action for bad faith denial of disability insurance coverage. The judgment, filed January 19, 1994, awarded Hepner the sum of $295,980.85, plus interest, attorney fees and costs.

On January 13, 1994, the Board issued an “Order to Withhold Personal Income Tax” to UNUM. The withholding order stated the…