Oldham

A judgment creditor filed a lien under Code of Civil Procedure section 708.410 against a pending lawsuit brought by the judgment debtor. The judgment debtor and the defendants subsequently agreed to settle that lawsuit with a payment by the defendants of $75,000 in cash, a transfer of interests in real property, and a payment by the defendants of the taxes past due on the real property. The judgment debtor moved for an order approving the settlement and the payment of attorney fees and costs ahead of the judgment creditor. The judgment creditor’s opposition to the motion claimed the transfer of the real property interest was structured to avoid its judgment lien and it was inequitable to give the attorney lien priority because the attorneys helped evade the lien. The superior court approved the settlement and ruled the lien of the attorneys for fees and costs had priority.

The judgment creditor appeals, claiming too little information was presented about the transfer of interests in the real property for the superior court to have properly exercised its discretion in approving the settlement. Because of this lack of information, the superior court was unable to tell if…