First Central Coast Bank v. Cuesta Title Guarantee Co.

This action arises out of an attempt by a judgment creditor to garnish funds in an escrow which were to be paid to the judgment debtor, a real estate broker, as his commission at the close of escrow.

We conclude that such funds are not subject to levy by way of garnishment by a judgment creditor prior to the close of escrow when not all conditions of escrow have been performed.

Facts

Plaintiff bank is a judgment creditor of Edward Rodgers, a real estate broker. On June 2, 1975, it obtained a judgment against Rodgers for $8,946.91. On September 16, 1975, plaintiff obtained a writ of execution. On May 25, 1976, while the writ was outstanding, an escrow was opened with defendant escrow company in connection with a transaction involving the exchange of real property between a Mr. and Mrs. Corea, and a Mr. and Mrs. Ellenson. The escrow instructions provided that Rodgers was to receive a broker’s commission of $8,280 at the close of escrow from funds received on behalf of the Coreas. The parcels of property to be exchanged between the Coreas and the Ellen-sons were not of equal value. The Ellensons thus agreed to pay cash from their own funds into escrow and to obtain…