United States District Court, C.D. California
Present: The Honorable MICHAEL W. FITZGERALD, U.S. District
(In Chambers): ORDER RE: PLAINTIFF LINCOLN BENEFIT
LIFE COMPANY'S MOTION FOR TEMPORARY RESTRAINING ORDER AND
ORDER TO SHOW CAUSE RE PRELIMINARY INJUNCTION 
the Court is Plaintiff Lincoln Benefit Life Company's
(“LBLC”) Motion for a Temporary Restraining Order
and Order to Show Cause re a Preliminary Injunction, filed on
September 23, 2019 (“Motion”). (Docket No. 195).
Defendants Alexander Dallal and Claire Dallal filed an
opposition to the Motion on September 30, 2019. (Docket No.
196). LBLC filed a reply on October 7, 2019. (Docket No.
Court has read and considered the parties' submissions,
and held a hearing on October 21, 2019.
reasons discussed below, the Court GRANTS
LBLC's Motion. Defendants must place $919, 290.49 in an
escrow account within 10 days. If they do not, Defendants are
enjoined from (1) further transferring or encumbering the
five properties at issue; (2) transferring or encumbering any
ownership interest in any of the LLCs that hold title to the
five properties at issue; or (3) further accessing or
dispersing any funds from any loans or lines of credit
secured by the five properties at issue. As stated at the
hearing, the Order will be mooted by the Court's issuance
of the final judgment against Defendants.
purposes of this Order, the Court will only focus on the
factual allegations relevant to this dispute.
August 2018, LBLC obtained a jury verdict of $919, 290.49 in
fraud and punitive damages against Defendants. (Motion at 2).
LBLC alleged that Defendants had engaged in rampant
long-term-care insurance fraud, and the jury ruled in favor
of LBLC. (Id.). The final judgment has not yet
issued. In the meantime, LBLC claims that Defendants have
been transferring real estate assets and taking other actions
in order to become judgment proof. (Id.).
Specifically, Plaintiffs allege that Defendants
“executed quitclaim deeds, transferred property to
their children, and set up four different LLCs to hold their
real estate assets.” (Id. at 1). Plaintiffs
also allege that Defendants “took out nearly $1 million
in lines of credit, depleting the equity in their
properties” which were “part of their $4 million
net worth at trial, which formed the basis for the punitive
damages verdict.” (Id.).
LBLC asserts that Defendants have transferred their assets,
including five properties (the “Properties”),
into newly formed LLCs. (Id. at 14). Additionally,
LBLC alleges that Defendants have taken out loans on the
Properties amounting close to $1 million, diminishing the
Properties' values. (Id. at 14-15). Further,
LBLC asserts that Defendants issued 10 quitclaim deeds for
transfers of their Properties into and out of trusts, into
and out of the LLCs they formed, and as gifts to their
children for little to no consideration. (Id. at
do not dispute the facts as outlined by LBLC in terms of what
Defendants have done with the Properties and their other
asserts. Instead, Defendants dispute the inferences LBLC
attempts to draw from that activity. Specifically, Defendants
argue that they are “elderly individuals with ongoing
health concerns” who are “facing their own
mortality.” (Opposition at 3). Defendants characterize
the actions they have been taking with their assets as
“simply to properly organize the estate and secure
better terms on existing loans, access the equity of the
properties to cover maintenance and related expenses, cover
medical and other living expenses (including legal fees),
prepare for the judgment in this case, and to provide for
their children.” (Id. at 3-4) (citing
Declaration of Claire Dallal ¶ 12).
REQUEST FOR JUDICIAL NOTICE
conjunction with their Motion, LBLC requests that the Court
take judicial notice of various deeds related to
Defendants' properties. (See Request for
Judicial Notice, Docket No. 195-1 (“RJN”)).
Defendants did not file an opposition or response to the RJN.
The Court may take judicial notice of matters of public
record, including public deeds. Reyn's Pasta Bella,
LLC v. Visa USA, Inc., 442 F.3d 741, 746 n.6 (9th Cir.
2006); Hotel Employees & Rest. Employees Local 2 v.
Vista Inn Mgmt. Co., 393 F.Supp.2d 972, 978 (N.D. Cal.
2005) (“Unimpeached and certified copies of deeds have
been widely held proper subjects of judicial notice.”).
do not oppose the RJN, nor do they dispute any of the facts
LBLC asks ...