Wheelon

On these appeals from judgments awarding third party claims, the sole question presented is whether the evidence establishes that title to the funds in question had passed to respondent prior to the attachments of appellants.

The facts are not in dispute. In March 1966, Pateo, Inc. (hereafter Pateo) sold its supermarket in Crescent City to Lehman Co., Inc. for about $52,000. This amount was deposited with the escrow holder, United California Bank (hereafter Bank). Pateo instructed the Bank to disburse all of the funds in accordance with its April 8, 1966 list of claims under notice to creditors. This list included $12,000 to be paid to respondent Skeels and her husband. Pateo, however, instructed the Bank to then pay only $7,000 of this amount and to hold the remaining $5,000 for instructions from Pateo.

The Bank complied with these instructions and disbursed all of the funds except the above mentioned $5,000. On June 10 and June 14, appellants, both creditors of Pateo, 1 attached the $5,000. The Bank answered the garnishments, indicating that at the time of the attachments, it was indebted to Pateo in the amount of $5,000. Respondent orally informed appellants that their claims…