Legal Corner: Error Permits Writ of Attachment to Trump Security Interest

In Brief 

In Outsource, LLC v. Horizon Communications Technologies, Inc. the issue was whether a debtor’s funds held by a third-party bank would be awarded to the debtor’s secured lender or to another creditor who had obtained a writ of attachment covering those funds. Applying the California Uniform Commercial Code, the court ruled in favor of the creditor because the secured lender’s UCC filing did not cover the funds. The c…