The Mechanics Bank v. Kontrabecki CA1/1

INTRODUCTION

Plaintiff The Mechanics Bank (Bank) obtained a money judgment against defendants John T. Kontrabecki and the JTK Trust. The Bank thereafter levied a writ of execution on approximately $2.8 million held in a deposit account maintained by Boston Private Bank & Trust Company (Boston Private). Defendants objected, claiming the monies levied on were statutorily exempt from execution as proceeds of a “private retirement plan” under section 704.115 of the Code of Civil Procedure (section 704.115). After taking evidence, the trial court denied defendants’ claim of exemption. We affirm.

FACTUAL BACKGROUND AND PROCEDURAL HISTORY

Defendants and TKG California I, LLC (TKG)1 guaranteed repayment of a loan made by the Bank to Tri-Valley Vineyards, LLC (Tri-Valley) pursuant to written commercial guaranties that they executed in favor of the Bank. After the loan to Tri-

1 Kontrabecki is president of The Kontrabecki Group Inc., which is the managing member of TKG. 1 Valley went into default, the Bank made a demand for payment on defendants for the amounts owed under their commercial guaranties. On April 1, 2011, the Bank filed a complaint for breach of written guaranty against…