Gramercy Escrow Co. v. Superior Court

The Gramercy Escrow Company (hereinafter referred to as the escrow holder) seeks a writ of mandate to set aside the order of the Superior Court of Los Angeles County denying a motion to quash an ex parte order requiring the escrow holder to appear at an attachment proceeding.

Factual Background

On or about June 18, 1969, an escrow was opened pursuant to the provisions of Business and Professions Code section 24074, concerning the sale and purchase of a cocktail lounge business known as “The Circle Inn,” by the Jo-Goss Ltd., corporation from Thomas J. Winchester (hereinafter referred to as debtor-transferor). The escrow called for the sale of furniture, fixtures, equipment, trade name, goodwill, leasehold improvements and an on-sale general liquor license. The Gramercy Escrow Company was named as escrow holder.

Prior to the receipt by the escrow holder of a notice of the approval of the transfer of the liquor license from the Department of Alcoholic Beverage Control, Margaret Marsh, real party in interest (hereinafter referred to as creditor) served an attachment on the escrow holder against the funds of the debtor-transferor. The escrow holder filed a timely return…