Grover Escrow Corp. v. Gole

This case involves statutory construction of Business and Professions Code section 24074, governing transfers in escrow of liquor licenses. The precise issue is whether that section precludes a creditor from establishing priority over the escrowed proceeds of such a transaction by attachment or garnishment. We conclude that section 24074 represents a mandatory and exclusive scheme for payment of creditors of liquor license transferors, giving creditors who comply with that section priority over those who employ any form of levy on the proceeds.

Seller agreed to sell to Buyer a cocktail lounge,…