Federal Trade Commission v. Inc21.com Corporation et al

Filing 211

ORDER RE EXEMPTION CLAIMED BY ROY LIN re 210 Notice (Other) filed by Federal Trade Commission. Signed by Judge Alsup on May 3, 2011. (whalc1, COURT STAFF) (Filed on 5/3/2011)

1
2
3
4
5
6

IN THE UNITED STATES DISTRICT COURT

7
FOR THE NORTHERN DISTRICT OF CALIFORNIA
8
9
FEDERAL TRADE COMMISSION,

11
For the Northern District of California

United States District Court

10

Plaintiff,

12
13
14
15
16

No. C 10-00022 WHA

v.

ORDER RE EXEMPTION
CLAIMED BY ROY LIN

INC21.COM CORPORATION, et al.,
Defendants.
/
Defendant Roy Yu Lin claims an exemption from execution of the judgment entered

17

against him in this action. Specifically, he claims a $33,000 exemption for a “401k retirement

18

account at Mass Mutual” pursuant to Section 704.115 of the California Code of Civil Procedure

19

(Dkt. No. 210-1). A judgment debtor has the burden of claiming and proving entitlement to any

20

exemption under the Fair Debt Collection Practices Act. The debtor’s claim of an exemption

21

prevents the government from selling or otherwise disposing of the property until a court

22

determines whether the debtor is entitled to the claimed exemption. 28 U.S.C. 3014.

23

“All amounts held, controlled, or in process of distribution by a private retirement plan,

24

for the payment of benefits as an annuity, pension, retirement allowance, disability payment, or

25

death benefit from a private retirement plan are exempt.” Cal. Civ. Proc. Code § 704.115(b). The

26

statute defines three categories of retirement accounts subject to this exemption, and the Ninth

27

Circuit has provided guidance on determining whether a particular account qualifies as a

28

retirement account under the statute. See Bloom v. Robinson, 839 F.2d 1376 (9th Cir. 1988).

1

Roy Lin, however, has not described or documented the account for which he claims the

2

exemption in any detail. As such, the present record is insufficient for determining whether he is

3

entitled to the claimed retirement account exemption. In addition, the FTC argues that even if

4

Roy Lin can demonstrate entitlement to the claimed exemption, it may not apply in light of the

5

asset freeze and asset disposition ordered in this action (Dkt. No. 210 at 2–3).

6

By MAY 18, 2011, Roy Lin shall file a sworn declaration identifying and describing each

7

account to which he claims the retirement account exemption applies. Any relevant supporting

8

documentation must be appended. The FTC then may file a response by MAY 25, 2011. After

9

reviewing those submissions, a decision will be made as to whether further briefing or a hearing
will be necessary.

11
For the Northern District of California

United States District Court

10

12

IT IS SO ORDERED.

13
14

Dated: May 3, 2011.

WILLIAM ALSUP
UNITED STATES DISTRICT JUDGE

15
16
17
18
19
20
21
22
23
24
25
26
27
28
2