Baruch Investment Co. v. California Equities, Inc.

Plaintiff brought this action seeking recovery of a fund of $9,875.25 held in escrow by defendant Bank of Belmont Shore, hereinafter called the bank, to which fund defendant California Equities, Inc., hereinafter called *768 defendant, also lays claim. Judgment went for plaintiff, and defendant appeals. We have concluded that the trial court correctly held for plaintiff and that judgment should be affirmed.

Both plaintiff and defendant are in the business of factoring accounts receivable. The chronology of events leading up to this litigation is as follows:

February 7, 1955. Defendant entered into a written factoring agreement with Modern Crane and Conveyor Company, Inc., hereinafter called Crane. Under this agreement Crane agreed to sell and defendant agreed to buy from Crane “at the net face amount of invoices less three (3%) per cent, accounts receivable created by” Crane’s sales on such sales “as shall be approved by” defendant, and defendant agreed to “be responsible for payment when the goods have finally been accepted by” Crane’s customers.

March 10, 1955. Defendant and Crane filed in the office of the county recorder (Los Angeles), pursuant to the provisions of sections…