Wilshire Oil Company of California v. John Costello, as Trustee of the Estate of Elliott Oil Co., Bankrupt
Opinion
Opinion
Barnes, J.
Appellee Costello is trustee of the estate of Elliott Oil Company, a bankrupt. The district court held he was the owner of the bankrupt’s accounts receivable, and any moneys paid thereon, free and clear of any claim of appellant Wilshire Oil Co.
Bankrupt had assigned these accounts to appellant on November 19, 1959, as security for $100,000 in notes representing an indebtedness to Wilshire. Wilshire collected after default on the notes on February 15, 1961. On March 27, 1961, Elliott Oil filed a voluntary petition in bankruptcy, one year and four months after assignment.
The notice of assignment was filed November 30, 1959 with the Recorder of Contra Costa County. It was signed by assignor; not by assignee, as required by California law. The district court held the notice of assignment did not comply with California Civil Code § 3019.
Appellant urges error on four grounds, reduced to three in argument:
(1) The assignment did comply with Cal.Civ.Code § 3019.
(2) The requirement of § 3019 that both assignor and assignee sign the assignment is merely directory, not mandatory.
(3) There was a substantial compliance, if not a complete compliance with § 3019.