Alliance Financial Capital, Inc.

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MEMORANDUM RE JACKSON-FENTON
MOTION FOR TURNOVER OF FUNDS 	-1-
UNITED STATES BANKRUPTCY COURT
FOR THE NORTHERN DISTRICT OF CALIFORNIA
In re
ALLIANCE FINANCIAL
CAPITAL, INC.,
Debtor.
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Case No. 08-30575 TEC
Chapter 7
MEMORANDUM RE JACKSON-FENTON MOTION FOR TURNOVER OF FUNDS
On December 19, 2008, the court held a hearing in the above-
captioned case on the Motion for Turnover of Funds filed by the
Jackson-Fenton parties. 	Chris D. Kuhner appeared for movants
Jacqueline Jackson, individually and as Trustee of the Jacqueline
Trust Dated October 19, 1989 and the Robert S. Jackson Trust Dated
December 13, 1986 (Jackson Parties) and Jacqueline and David Fenton
(Fenton Parties). 	Dennis D. Davis appeared for the chapter 7
trustee E. Lynn Schoenmann. 	James H. Seymour appeared for
interested party Jennifer M. Moore. 	Thomas C. McNally, III
appeared for creditors John and Susan Nagle. 	Kevin C. Driscoll,
Jr. appeared for Burke Environmental LLC.
The Jackson-Fenton motion for turnover should be granted on
the basis that Jackson and Fenton hold an unavoidable security
Signed and Filed: January 29, 2009
________________________________________
THOMAS E. CARLSON
U.S. Bankruptcy Judge
________________________________________
Entered on Docket
January 29, 2009
GLORIA L. FRANKLIN, CLERK
U.S BANKRUPTCY COURT
NORTHERN DISTRICT OF CALIFORNIA
Case: 08-30575 Doc# 102 Filed: 01/29/09 Entered: 01/29/09 16:04:21 Page 1 of
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MEMORANDUM RE JACKSON-FENTON
MOTION FOR TURNOVER OF FUNDS
interest in the funds in question. 	It is established that Jackson
and Fenton obtained a writ of attachment in San Mateo Superior
Court action 450151. 	That action was terminated by a judgment
entered in favor of Jackson and Fenton in the same action. 	As a
result, the judgment lien relates back to the date of the writ of
attachment under Cal. C.C.P. § 697.020.
The sole objection to the motion for turnover was filed by
Jennifer Moore. 	She argues that the judgment lien does not relate
back, because the parties settled the San Mateo action, that the
settlement involved a release of all claims, and that in any event
the settlement replaced the pending claims and could not be the
basis for relation back under section 697.020. 	This argument is
unpersuasive. 	First, the judgment was entered in the action in
which the writ had been issued. 	This is not an instance in which
the action had been dismissed, and plaintiff thereafter sued the
settling defendant for breach of contract in a separate action.
Second, the release never went into effect. 	Under the terms of the
settlement agreement, the release was effective only upon full
payment of the settlement amount. 	See Settlement Agreement and
Mutual Release, Part II A. 	That has never occurred. 	Until such
performance, which never occurred, the settlement agreement was in
substance a stipulation for entry of judgment.
**END OF MEMORANDUM**
Case: 08-30575 Doc# 102 Filed: 01/29/09 Entered: 01/29/09 16:04:21 Page 2 of
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Court Service List
Joan M. Chipser, Esq.
Law Offices of Joan M. Chipser
1 Green Hills Court
Millbrae, CA 94030
Daniel M. Linchey, Esq.
Katherine D. Ray, Esq.
Goldberg, Stinnett, Davis and Linchey
44 Montgomery Street, Suite 2900
San Francisco, CA 94104
James H. Seymour, Esq.
706 Cowper Street
Palo Alto, CA 94301
Chris D. Kuhner, Esq.
Kornfield, Paul, Nyberg & Kuhner
1999 Harrison Street, Suite 2675
Oakland, CA 94612
Thomas C. McNally, III, Esq.
455 Market Street, 19th Floor
San Francisco, CA 94105
Michael St. James, Esq.
St. James Law
155 Montgomery Street, Suite 1004
San Francisco, CA 94104
Michael D. Cooper, Esq.
Wendel, Rosen, Black and Dean
1111 Broadway, 24th Floor
P.O. Box 2047
Oakland, CA 94604-2047
Kevin C. Driscoll, Jr., Esq.
Barnes & Thornburg LLP
One Norther Wacker Drive, Suite 4400
Chicago, IL 60606
Case: 08-30575 Doc# 102 Filed: 01/29/09 Entered: 01/29/09 16:04:21 Page 3 of
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