Wednesday, February 27, 2019

MDQ LLC v. GKCJ (Cal. Ct. App. - Feb. 27, 2019)

I'm a reasonably intelligent guy.  Familiar with a lot of sophisticated legal jargon.

But even my eyes glazed over when I read Justice Grimes' summary of today's opinion:

"The question in this interpleader action is which adverse claimant was entitled to the interpleaded funds: a judgment creditor with a properly recorded judgment lien, or an assignee who did not file a financing statement with respect to distributions irrevocably assigned to it by the judgment debtor before the judgment lien was recorded. The answer depends on whether the assignment created a security interest that had to be perfected (but was not) by the filing of a financing statement under California’s Uniform Commercial Code (UCC or the Code)."

Not exactly the most exciting legal thriller ever invented.

** Spoiler Alert **

Respondent wins.