In Re Marriage of Braendle

The parties to this appeal, respondent Dina Braendle and appellant American Overseas Air Freight, Inc., (American Overseas) are both creditors of Ruediger Braendle and have conflicting claims to stock owned by him. We conclude that Dina Braendle holds a prior perfected security interest, and therefore has precedence. We further hold that American Overseas may not recover the debt owed by Ruediger from her or property assigned to her in the marital dissolution. Finally, we hold that the trial court erred in transferring title to the stock to Dina. As secured creditor, Dina was entitled to possession, not title, and must comply with the requirements of division 9 of the California Uniform Commercial Code.

Factual and Procedural Background

The marriage of Dina and Ruediger Braendle was dissolved by judgment entered December 11, 1991. In the division, Ruediger Braendle was awarded the stock in American Overseas, valued at $1,438,651. Dina was awarded certain real and personal property and pension and bank accounts valued at less than the stock. To equalize the division, Ruediger was ordered to pay Dina the sum of $483,393. “Said equalizing payment” was “ordered to be…