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Western Steel and Ship Repair, Inc. v. RMI, Inc.
California Court of Appeal
222 Cal. Rptr. 556 (1986)
RMI, Inc. (RMI) (defendant) hired Western Steel and Ship Repair, Inc. (Western) (plaintiff) as a subcontractor to work on overhauling vessels for the United States Navy. Western sued RMI, seeking liquidated contract damages. On the same day Western filed the lawsuit, Western moved for an ex parte attachment of RMI’s funds. Western supported this motion by alleging that RMI was in a shaky financial condition and had refused to pay the underlying claim. The trial court granted the motion and issued a writ of attachment. Western levied the writ on an RMI bank account the following day. RMI moved to quash the writ of attachment. The court set a hearing for the next day. RMI argued that Western had failed to establish the probable validity of its claim and had failed to justify the ex parte issuance of the writ with sufficient proof of great or irreparable injury. The trial court denied the motion to quash. RMI appealed.
Rule of Law
Holding and Reasoning (Kremer, J.)
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