People Ex Rel. Younger v. Allstate Leasing Corp.

Opinion

ROUSE, J.

This is an appeal by defendant Allstate Leasing Corporation from an order denying its motion to quash a writ of attachment levied by plaintiff State of California (hereafter “State”) against defendant’s bank accounts.

The record shows that the State brought suit against Allstate and various individuals alleged to be its employees and agents, seeking to enjoin defendants from defrauding the public by means of false and misleading advertising and misrepresentation. The State also sought to recover monetary penalties, under Business and Professions Code, section 17536, for each act of false and misleading advertising. In addition, it was alleged that Allstate was transacting intrastate business in California without having obtained a certificate of qualification pursuant to Corporations Code, section 6403; and the State sought to recover the civil penalties prescribed by Corporations Code, sections 6403 and 6408, for carrying on unauthorized business in California.

[975]

Contemporaneous with the filing of the complaint, the State filed a declaration for the attachment of Allstate’s funds pursuant to Code of Civil Procedure, section 537, subdivision 5, which authorizes a prejudgment attachment “[i]n an action by the State of California or any political subdivision thereof, for the collection of taxes due said state or political subdivision, or for the collection of any moneys due upon any obligation or penalty imposed by law.”

The attachment was effected without prior notice to defendant Allstate and was levied upon California bank accounts of Allstate containing some $15,000. Allstate moved to quash the attachment, asserting that Code of Civil Procedure, section 537, subdivision 5, was unconstitutional. The lower court denied the ihotion to quash. .

The instant appeal involves but one question—whether Code of Civil Procedure, section 537, subdivision 5, violates procedural due process because it fails to meet the requirements laid down by our Supreme Court in

Randone

v.

Appellate Department