Kovacs

California Uniform Commercial Code section 9332, subdivision (b) reads, “A transferee of funds from a deposit account takes the funds free of a security interest in the deposit account unless the transferee acts in collusion with the debtor in violating the rights of the secured party.” This case presents a very narrow question—one of first impression in California: Is an unsecured judgment creditor, which satisfies its judgment from deposit account funds, included in the definition of “transferee” as contemplated by section 9332(b), such that it may take those funds free of any security interest?

Appellant, Orix Financial Services, Inc. (Orix), filed a complaint against defendants Mike Kovacs and Marius Marta, doing business as Bay Technology (collectively, Kovacs), for unjust enrichment and imposition of a constructive trust. The trial court, answering the foregoing question in the affirmative, sustained defendants’ demurrer to the complaint without leave to amend. For purposes of our review, we therefore assume the truth of the allegations contained in the complaint (Zelig v. County of Los Angeles (2002) 27 Cal.4th 1112, 1126 [ 119 Cal.Rptr.2d 709 , 45 P.3d 1171 ]),…