Federal Trade Commission v. Inc21.com Corporation et al

Filing 217

ORDER DENYING EXEMPTION CLAIMED BY ROY LIN re 210 Notice (Other) filed by Federal Trade Commission. Signed by Judge Alsup on May 25, 2011. (whalc1, COURT STAFF) (Filed on 5/25/2011)

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

v.

ORDER DENYING
EXEMPTION
CLAIMED BY
ROY LIN

INC21.COM CORPORATION, et al.,
Defendants.
/

15
16

No. C 10-00022 WHA

Defendant Roy Lin claims a $33,000 exemption from execution of the judgment entered

17

against him in this action for a “401k retirement account at Mass Mutual.” The exemption is

18

claimed pursuant to Section 704.115 of the California Civil Procedure Code (Dkt. No. 210-1).

19

The claimed State-law exemption applies to this federal action by way of the federal Fair

20

Debt Collection Practices Act, which provides that a debtor may elect to claim exemptions

21

established by State law. 28 U.S.C. 3014(a)(2)(A). The FDCPA, however, does not “supersede

22

or modify the operation of . . . any inherent authority of a court to provide[] injunctive relief.”

23

28 U.S.C. 3003(c)(7).

24

Pursuant to the inherent authority to freeze assets as part of a preliminary injunction,

25

Roy Lin was prohibited from transferring or otherwise disposing of any financial assets

26

(Dkt. No. 97 at 2–3). The account for which Roy Lin now claims an exemption was identified as

27

one of his frozen accounts (Dkt. No. 118-5). Following summary judgment, the account freeze

28

was perpetuated “until the full restitution amount has been paid,” and “the financial institutions

1

with control over these frozen accounts [were] authorized to facilitate the payment of frozen

2

funds directly to the FTC to satisfy the judgment in this dispute” (Dkt. No. 162 at 43).

3

Roy Lin’s claimed exemption would interfere with this previously-ordered injunctive

4

relief. Accordingly, it is not authorized by the FDCPA. Roy Lin’s claimed retirement-account

5

exemption is DENIED.

6
7

IT IS SO ORDERED.

8
9

Dated: May 25, 2011.

WILLIAM ALSUP
UNITED STATES DISTRICT JUDGE

11
For the Northern District of California

United States District Court

10

12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
2