Lonely Maiden Productions v. Goldentree Asset Management

Opinion

ASHMANN-GERST, J.

The primary question presented is whether a secured lender may foreclose on funds held by a payroll processing company and thereby defeat subsequent claims to those funds asserted by unsecured creditor employers who contend that the funds should have been used to meet the payroll processing company’s payroll obligations. The answer is yes when, as here, the funds paid by the unsecured creditor employers were not held in trust. Thus, the trial court properly denied the summary adjudication motion filed by the appellants1 (collectively the film clients) as to whether *373Gold…