C.A. 4th;
D070797

The Fourth Appellate District affirmed a judgment. The court held that the rights of an assignee to escheated property were no greater than the rights of the assignor, which in this case was a suspended corporation that had no right to claim the escheated property.

Casiopea Bovte, LLC obtained a default judgment against Financial Title Company in the amount of $67,409. The California Franchise Tax Board subsequently suspended Financial Title's “powers, rights and privileges.” The superior court entered an order assigning to Casiopea certain funds held by the State Controller on behalf of Financial Title. The assignment was made subject to any tax liens and proration of the funds between Casiopea's judgment and another judgment, as the Controller saw fit. Casiopea submitted claims to the Controller seeking unclaimed property held on behalf of Financial Title as escheated funds. The Controller denied the claims, explaining that Financial Title's status as a suspended corporation made it incapable of exercising its corporate powers, rights, or privileges for any business purpose. It therefore lacked capacity to claim the funds until its suspension was lifted.