Opinion ID: 1259865
Heading Depth: 1
Heading Rank: 7

Heading: effect of preliminary injunction

Text: As noted earlier the trial court granted plaintiffs a preliminary injunction by which the Controller and county auditors were ordered to withhold 25 percent of the payments due under Olson v. Cory I, apparently to secure plaintiffs' attorney fees. As to this 25 percent, the state and counties clearly were prevented by law, i.e., the injunction, from making such payments and so cannot be held liable for interest accruing while the injunction is in effect. (17) Plaintiffs contend they are equitably entitled to such interest because the debtors have had use of the money. Civil Code section 3287, however, relieves debtors of the obligation for interest when payment is prevented by law, regardless of such equitable considerations. Plaintiffs, of course, do not and could not dispute the validity of the injunction which they themselves obtained. Let a peremptory writ of mandate issue, directing the trial court to vacate its order denying plaintiffs' motion for an order specifying that plaintiffs' right to interest is an issue without substantial controversy and to make a different order consistent with this opinion. The parties shall bear their own costs.