At a hearing on a third-party claim, the third person has the burden of proof.
§ 720.360.Burden of Proof
Title 9. Enforcement of Judgments · Division 4 · Chapter 4. Hearing on Third-Party Claim · Enacted 1982 · no amendments on record · Last verified July 28, 2026
In one sentenceSection 720.360 places the burden of proof at a third-party claim hearing squarely on the third person asserting the claim, meaning the secured party or lienholder must affirmatively establish the claimed interest rather than requiring the creditor to disprove it.
Full Text of § 720.360
Plain-English Summary
This is one of the shortest sections in the chapter, and one of the most consequential. At a hearing on a third-party claim, the third person -- the one asserting ownership, possession, or a security interest or lien -- has the burden of proof.
Combined with § 720.350(b)'s rule that the creditor's silence is treated as an automatic denial, this places the entire evidentiary weight on the party making the claim. A secured party who wants the court to recognize a lien's priority over the creditor's enforcement lien has to come forward with the security agreement, the financing statement, and whatever facts establish the interest and its priority -- the creditor doesn't have to prove a negative.
Frequently Asked Questions
Who has the burden of proof at a third-party claim hearing?
The third person -- the party asserting ownership, possession, or a security interest or lien in the property.
Does the creditor have to disprove the claim?
No. Because the claim is automatically deemed controverted under § 720.350(b), and the burden of proof rests on the third person under § 720.360, the creditor doesn't carry any burden to disprove it.
What does a lienholder need to prove to win at the hearing?
That the claimed security interest or lien exists and, for purposes of Chapter 3, that it's superior to the creditor's own lien on the property.
Amendment History
Added by Stats. 1982, Ch. 1364, Sec. 2. Operative July 1, 1983, by Sec. 3 of Ch. 1364.
Source & verification. Section text is reproduced verbatim from
the Deering's California Codes Annotated / vLex. Enacted by the California Legislature.
Last verified July 28, 2026.
· Official source
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