California Court of Appeal

After defendant purchased a business from plaintiff's decedent husband, defendant defaulted on the purchase contract payments. Plaintiff sued and obtained a money judgment and a lien on the assets of the business including all profits. Defendant then declared bankruptcy, terminating his personal liability on the judgment, but the lien survived. Plaintiff brought this action for money had and received to recover post-bankruptcy profits from the business. Judgment of the trial court finding in favor of defendant is reversed, where: 1) this action is to enforce a judgment, and so it cannot be barred by res judicata as it could not have been litigated in the first action, having risen after the initial complaint was filed; 2) even if res judicata and collateral estoppel might otherwise apply, plaintiff's action to enforce the judgment is specifically authorized by Code of Civil Procedure section 683.050; 3) due to defendant's wrongful acts in avoiding the lien, there is no other way to enforce the judgment but an action for damages; and 4) as the trial court did not originally consider the question of damages, it must consider damages on retrial.

Appellate Information

• Decided 03/24/2015
• Published 03/24/2015

Judges

Court

• California Court of Appeal

Counsel