Kono v. Meeker
196 Cal. App. 4th 81
| Cal. Ct. App. | 2011Background
- Meekers operated antique businesses; claimed exemption under Cal. Code Civ. Proc. §704.060(a) for inventory items; judgment obtained by Dana J. Kono based on a sister-state Iowa judgment; court ordered turnover of 11 items to levy proceeds; Meekers claimed inventory exemptions for items listed as inventory; trial court denied exemption for three specific items (antique sewing machine, antique surveying unit, antique fluting iron) on the basis they were inventory, not used in the trade.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether inventory items can be exempt under §704.060(a)(3). | Meekers: inventory items are tools of the trade for antique dealing. | Meekers: items are “materials” actually used in the trade and attract consignors. | No; inventory is not exempt as tools of the trade. |
| Whether ownership of inventory items affects exemption when items are offered for sale. | Meekers: personally owned items used to attract consignors are exempt. | Exemption requires actual use in the trade, not mere inventory. | Inventory items offered for sale do not qualify as exempt tools. |
| How to interpret 704.060(a) in light of statutory purpose and case law. | Statute should be liberally construed to protect livelihood. | Exemption is narrowly limited to actual tools/means of livelihood; inventory not among them. | Plain meaning with context supports denial of exemption for the inventory here. |
Key Cases Cited
- Ford Motor Credit Co. v. Waters, 166 Cal.App.4th Supp. 1 (Cal. App. 4th Supp. 2007) (exemption scheme; burden on debtor; statutory interpretation authority)
- Sun Ltd. v. Casey, 96 Cal.App.3d 38 (Cal. App. 1979) (exemption scope; retail vs. service-related tools)
- In re Petersen, 95 F. 417 (N.D. Cal. 1899) (historical scope of tools of trade exemption)
- In re McManus, 87 Cal. 292 (Cal. 1890) (safe as tool; scope of tools exemption for jewelers/watch repairers)
- Lopp v. Lopp, 198 Cal.App.2d 474 (Cal. App. 1961) (track/vehicle tools exemption; analogy to business operations)
- In re Vigil, 101 B.R. 189 (Bankr. N.D. Cal. 1989) (special skill; exemption for tools necessary for occupation)