Specialty Laboratories Inc. v. Advanced Biomedical, Inc. (In re Advanced Biomedical, Inc.)

MEMORANDUM DECISION AND ORDER

This matter came on for trial on November 20, 2015. Plaintiff Specialty Laboratories Inc. (“Plaintiff’) commenced this adversary proceeding by filing a complaint on October 14, 2014 seeking a declaratory judgment that it is the owner of, and holds title to, all or a portion of certain accounts receivable and proceeds thereof scheduled by Advanced Biomedical, Inc., chapter 11 debtor and debtor in possession (the “Defendant” or “Defendant-Debtor”). Defendant contends that it is the owner of, and holds title to, all such personal property.

PRE-BANKRUPTCY LITIGATION BETWEEN PLAINTIFF AND DEFENDANT

In December 2013 Defendant and Plaintiff stipulated to the entry of a judgment in the Superior Court of the State of California, County of Orange, against Defendant in the amount of $227,386.99. This stipulation was approved by the Honorable Sheila Fell, Judge of the Superior Court, on January 10, 2014. Several days later, on January 15, 2014, Plaintiff filed a Notice of Judgment Lien against Defendant in the amount of $227,386.99 with the California Secretary of State. Thereafter, on September 25, 2014, Judge Fell signed an Assignment Order Re: Rights to…