Brought to you by LACBA’S Remedies Section
January 2010

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     Message from the Chair:
 
As we end 2009, I want to thank everyone involved with putting together the December 5 event on Prejudgment Remedies. The event was very well attended, and participants rated it very highly. We have a lot of exciting programs planned for 2010, with the first on January 28: Breakfast with the Judges - Prejudgment Remedies. I look forward to seeing you at this event and all of our future events.

David Ray
dlr@srblaw.com


     Case Summaries:

Prejudgment Writ of Attachment
A guaranty is a separate and independent obligation from that of the principal debt. Though the three principal loans here were secured by real property, the guaranties were signed by the defendant. Thus the prohibition in Section 483.010 against issuance of an attachment order for a claim secured by real property does not apply. 
     United Central Bank v. Superior Court of Orange County. 

Orap Lien
The exemption created under Subdivision (j) of Section 697.740 of the Code of Civil Procedure only applies to letters of credit.
     Credit Suisse First Boston Mortgage Capital v. Danning, Gill, Diamond & Kollitz. 

Fraudulent Transfers
Under the Uniform Fraudulent Transfers Act, if a plaintiff cannot produce any evidence that the value of the property could support any net recovery for the plaintiff in the event the conveyance were set aside, the conveyance will not be set aside. The fact that the transfer could not be set aside under the UFTA, notwithstanding the debtor’s intent to defraud his creditor, does not mean that the creditor is without a remedy under the common law or equity. Judgment creditors of the beneficiary of a resulting trust may reach their equitable interest in the resulting trust.
      Fidelity National Title Insurance Company v. Schroeder.

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