Time to Get a New Registered Agent

Bergstrom v. Zion Bancorporation, N.A., No. B309154 (D1d2 May 5, 2022)

A judgment Creditor served a writ of execution on the registered agent of a Bank that held some accounts of the judgment debtor. The agent misread the writ and, believing it to have been served on the wrong party, ignored it. Debtor proceeded to drain the accounts before Creditor could clear up the mistake. 

Under Code of Civil Procedure § 701.020(a) a third person’s “fail[ure] or refus[al]” to deliver property subject to a levy “without good cause” renders the third person “liable to the judgment creditor” for the amounts withdrawn and covered by the levy. The Court reads “without good cause” to mean “negligently.” And since the bank’s agent was clearly negligent, the Bank now owes the Creditor about $102k.

Reversed.