Plaintiff assignee appealed from a judgment of the Superior Court of the City and County of San Francisco (California) that was in his favor in an action for return of certain items of property pledged as collateral on loans and for a designated sum of money. The trial lawyer will help you in all litigation cases.
A manufacturing company took out loans from defendant bank, When the manufacturing company went bankrupt, the assignee purchased claims against the manufacturing company, including those claims against it by the bank. Thereafter, the assignee sued the bank for return of personal property pledged as collateral on the loans and for a designated sum of money. The trial court entered judgment in the assignee's favor. Dissatisfied with the amount of the judgment, the assignee appealed, and the court affirmed. The property and cash returned to the assignee equaled what was left after the bank satisfied the manufacturing company's outstanding debt. A pledgee was allowed to take the property pledged as a cancellation of the debt if the debt was not paid, provided he did do at a fair market value. The assignee had no right to return of the pledged property until the debt was in some form discharged.
The judgment granting the assignee return of certain items of property pledged as collateral on loans and a designated sum of money was affirmed.