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well i’ve handled a number of cases and
i can bring creativity to each case now
one example is radco versus diamond
walnut this is one of my first cases
after i left the big firms and opened up
my own shop radco manufactured urethane
foam and they sold it for construction
sites to a subcontractor named midstate
midstate applied it to diamond walnut’s
roofs then they didn’t pay radco so my
client calls me and how do i get a
mechanical and i said well did you do
your 20 day notice so you have to do a
notice to the owner that you’re
providing materials if you want to get a
lien against that owner’s property
they didn’t do a 20-day notice the time
had expired you have to do it within 20
days of the delivery of the product to
the site
so i said well can you go and drive
there and pick up these 55-gallon drums
drive them around the block and then
drop off again you’re releasing
possession and boom here’s your 20-day
notice well no they’re all locked up
they’re all locked up in a warehouse
so that’s just great so i thought about
my conversation with him he said
mid-state
could not pay their bills when due they
were basically insolvent when they
purchased that product on credit
i remembered something about my reading
of the ucc uniform commercial code
and if someone buys a good on credit
and is insolvent at the time
that you can demand return of those
goods and you get constructive
possession of the goods
so i demanded the return
and then i now had constructive
possession and then i served a 20-day
notice and i released constructor
possession although the 55-gallon drums
never left the warehouse so i explained
this to
diamond walnut they laughed at me i said
don’t don’t do not pay mid-state and
they did we sued we won
it was precedent setting because nobody
had ever grafted the ucc under a
mechanical lean statute
and the judge ordered diamond walnut to
pay us in full although they had already
paid mid-state who later filed
bankruptcy
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Santa Ana, CA commercial litigation attorney Dan Callahan shares the story of his memorable case: Radco v. Diamond Walnut.