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LONELY MAIDEN PRODUCTIONS, LLC v. GOLDENTREE ASSET MANAGEMENT, LP

No. B225782.

201 Cal.App.4th 368 (2011)

LONELY MAIDEN PRODUCTIONS, LLC, et al., Plaintiffs and Appellants, v. GOLDENTREE ASSET MANAGEMENT, LP, et al., Defendants and Respondents.

Court of Appeals of California, Second District, Division Two.

November 30, 2011.

Attorney(s) appearing for the Case

Holland & Knight, Bruce S. Ross , Richard T. Williams and Roger B. Coven for Plaintiffs and Appellants.

Latham & Watkins, Wayne S. Flick , Wendy P. Harper and Kristine L. Wilkes for Defendants and Respondents.

OPINION

ASHMANN-GERST, J.—

The primary question presented is whether a secured lender may foreclose on funds held by a payroll processing company and thereby defeat subsequent claims to those funds asserted by unsecured creditor employers who contend that the funds should have been used to meet the payroll processing company's payroll obligations. The answer is yes when, as here, the funds paid by the unsecured creditor employers were...

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