Associates Capital Services Corp. v. Security Pacific National Bank

Opinion

THOMPSON, J. This appeal is from a judgment of dismissal entered after defendant’s demurrer to plaintiff’s complaint was sustained without leave to amend. It raises the issue of the adequacy of a corporate bond issued by an authorized surety insurer to satisfy the provisions of Code of Civil Procedure section 682a requiring that a writ of execution levied on a joint bank account be accompanied by a “bond” which is “executed by the judgment creditor . . . with two or more sufficient sureties.” We conclude that section 682a, when read in conjunction with Code of Civil Procedure section 1056, permits a levy of execution upon a joint bank account where security is given in the form of a “bond” executed by the authorized insurer alone without the signature of the levying judgment creditor. We therefore reverse the judgment of dismissal which denies plaintiff relief against defendant bank which failed to honor a levy of execution.

Because of the procedural posture of the case at bench, we recite, as the basis of our decision, the facts alleged in plaintiff’s complaint.

Associates Capital Services Corporation obtained a money judgment in the amount of $9,542.07 against Thomas C. Stran. Associates secured a writ of execution based on the judgment. Stran had an interest in bank accounts in Security Pacific National Bank in the names of “Thomas C. Stran and Joann C. Stran.”

Pursuant to instructions from Associates, the marshal delivered to Security Bank a copy of the writ of execution, a demand upon garnishee, and the original of a surety bond issued by American Bonding Company at the request of Associates. The bond was duly executed on behalf of American Bonding Company. It obligates American pursuant to Code of Civil Procedure sections 682a and 1041 to “person or persons other than the judgment debtor whose interest is sought to be levied upon under said statutory obligations, in the sum of Twenty Thousand . . . dollars.” The bond is riot executed by anyone on behalf of Associates.

[822]Security Bank answered the levy with a return of garnishee stating that it held “nothing” for the account of Thomas C. Stran. The return was false; when the writ of execution and supporting documents were delivered to the bank, it was obligated to Thomas C. and Joann C. Stran by reason of their joint bank accounts. Something under one month after its return on the levy, Security Bank informed counsel for Associates that the levy of the writ of execution was ineffective because of the failure of Associates to sign the execution bond along with American Bonding Company.