Carter

Plaintiff, trustee in bankruptcy of Ocean Agencies, Ltd., seeks to recover the proceeds of an alleged account receivable consisting of $4,387.14 paid to the defendant creditor. Plaintiff rests its case on a single legal point.

The assignment of the account receivable was allegedly void because of defendant’s failure to comply with California Civil Code Section 3019 which section requires the recordation of a notice of an assignment for the benefit of creditors.

The parties have stipulated to the following facts:

Defendant bank on July 21, 1950, loaned $30,000 to Ocean Agencies, Ltd. The transaction was evidenced by a promissory note for $30,000 secured by an assignment of freight moneys due Ocean Agencies, Ltd., under a charter party and bill of lading from a Philadelphia concern in the sum of $46,000. The bank loaned the money as an advance for the purpose of financing the voyage of the S.S. Othon in the carriage of ore which was represented by the bill of lading.

When the S.S. Othon reached Philadelphia in September 1950 libels in admiralty, in rem and in personam, were filed against the cargo of the vessel and the freights due. The freight debtor deposited the full amount…