Walton
Walton v. March Fong Eu
Opinion
Opinion
Blease, J.
In this class action suit, the trial court granted summary judgment in favor of defendant. We will reverse the judgment.
Facts
Plaintiffs entered into a contract with National Buyers Association, Inc. (National), a discount buying organization. National breached its contract and on September 26, 1980, plaintiff obtained a judgment against National in the Alameda County Municipal Court.
In March 1977, National made a cash deposit, in lieu of bond, with defendant. (Former Civ. Code, § 1812.105.) The deposit took the form of an investment certificate issued by Home Savings and Loan Association in the face amount of $30,000. Plaintiffs sought, on October 1, 1980, to satisfy their judgment by demand upon defendant from this source. They were too late; the last of the funds from the certificate had been paid out by defendant three months earlier.
Prior thereto, on March 14, 1980, counsel for plaintiffs advised defendant that he was representing a claimant against National and was told a cash deposit had been filed. Apparently counsel did not inquire, nor was he informed, what method defendant would follow in satisfying the claims already on file.