Haas

—This appeal is from an order after judgment, more particularly a ruling in favor of third party claimants and against plaintiff-judgment creditor in connection with its efforts to levy execution on property believed to be owed by defendant-judgment debtors. There is no dispute on the facts and the legal determination turned on interpretation and application of section 2326 of the California Uniform Commercial Code. In our view, the trial court incorrectly interpreted the section, and so the order appealed from will be reversed with directions.

Operational Facts

In an effort to satisfy its judgment against defendants who do business as Unique Motor Cars, Ltd., plaintiff instructed the Riverside County Marshal to seize and levy upon a certain new 1985 Mercedes Benz automobile, carrying dealer plates and in the possession of defendants. After the levy, Klaus Meininger and Autohaus Imports, Inc. (third party claimants) filed their third party claim with the marshal, and in due course the matter came before the trial court for resolution.

According to the undisputed facts, as disclosed by the record, defendants were in physical possession of the seized automobile. Although…