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Bus. & Prof. Code 7735

The following summaries are of recent published decisions of the California appellate courts, the Ninth Circuit, and the United States Supreme Court. The summaries are presented without regard to whether Severson & Werson represented a party in the case.

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Neptune Management Corp. v. Cemetery & Funeral Bureau (2024) 100 Cal.App.5th 1007

Bus. & Prof. Code 7735 requires a funeral establishment to hold in trust money paid it under a preneed agreement or an agreement collateral thereto.  Section 7741 exempts from that requirement money paid for merchandise that is delivered as soon as paid for.  This decision holds that constructive delivery--that is granting the purchaser legal title, but retaining possession of the… Read More

Trident Society, Inc. v. Cemetery & Funeral Bureau (2024) 100 Cal.App.5th 992

Bus. & Prof. Code 7735 requires a funeral establishment to hold money it has received pursuant to a preneed agreement, and “any agreement collateral thereto,” in trust until the funeral establishment performs the contract.  This decision holds that the statute requires even money paid for services or merchandise furnished immediately upon payment to be held in trust if the contract… Read More