Burden of Proof “good faith” Under Code of Civil Procedure section 708.180Corbett v. Hayward Dodge

Hayward Dodge asserts that we should be guided by the interpretation of Code of Civil Procedure section 708.180, which courts have interpreted as placing the burden of proving “good faith” on the party whose good faith is being questioned.  (Evans v. Paye (1995) 32 Cal.App.4th 265, 282.)  However, Hayward Dodge’s reliance on Code of Civil Procedure section 708.180 is unavailing.  This statute does not involve imposing sanctions or costs on a party for pursuing an action not in good faith.  Rather, this statute concerns the court’s determination of interests in property when a third person claims an interest in property adverse to the judgment debtor or denies the debt.  (Id., subd. (a).)  The statute specifies that the court cannot make this determination of interests in property if a number of conditions are satisfied and the third person makes the claim in good faith.  (Id., subd. (b).)  The purpose of this statute is to give relief to a judgment creditor when a third person’s claim to property of the judgment debtor is made in bad faith.  (Evans v. Paye, supra, at p. 278.)  “Thus, the statute contemplates that the third person has the burden to prove his or her denial of a debt was made in good faith.  (Evid. Code, § 500 [‘Except as otherwise provided by law, a party has the burden of proof as to each fact the existence . . . of which is essential to the claim for relief . . . that he is asserting.’].)”  (Evans, supra, at pp. 281-282.)