Liquidity Sources, LLC v. Javier Vasquez
Published: Nov. 25, 2003 | Result Date: Jul. 23, 2003 | Filing Date: Jan. 1, 1900 |Case number: CV139519 Bench Decision – $666,252
Judge
Court
Santa Cruz Superior
Attorneys
Plaintiff
Defendant
Facts
The plaintiff is an Arizona limited liability company engaged in the business of financing accounts receivable. The defendant, together with his wife, own and operate a chain of retail markets under the name "La Esperanza Market." Mango-Mania Import-Export Inc. ("Mango") is an Arizona corporation engaged in the business of distributing and selling fresh produce. One of Mango's customers was Vasquez to whom it sold fresh produce from 1997 to 2000. On Jan. 28, 1998, Liquidity and Mango entered into an Accounts Receivable Purchase and Security Agreement whereby Liquidity could purchase those accounts receivable of Mango that were eligible for purchase under the terms of the security agreement. Liquidity also was granted a security interest in all of Mango accounts receivable in order to secure any and all indebtedness of Mango to Liquidity. On Nov. 6, 1998, Liquidity and Mango and Mango's president, Acevedo, entered into an installment Loan and Security Agreement and on the same day Mango executed a secured promissory note in favor of Liquidity. Under the terms of the security agreement, Liquidity was assigned all of Mango's present and future accounts receivable, either by way of purchase or by reason of being granted a security interest in the accounts. Each of Vasquez's accounts receivable owed to Mango was created by an invoice evidencing the produce purchased by Vasquez and the amount Vasquez owed Mango for that purchase. Pursuant to the terms of the security agreement and in accordance with then California Commercial Code Section 9318, Liquidity and Mango notified each of Mango's customers of the assignment of the accounts receivable and instructed that all payments were to be made directly to Liquidity. Vasquez admitted receiving the notice on Dec. 18, 1998 and admitted understanding what it meant and what it required of him. Nevertheless, Vasquez made payments on the Mango invoices directly to Mango and Acevedo because Acevedo told him to do so. Vasquez also admitted to having received and understood several other notices from Liquidity advising him to make payment to Liquidity and that he risked having to pay a second time if he failed to do so.
Settlement Discussions
The defendant refused to make any settlement proposal.
Other Information
The trial was bifurcated, with issue of liability tried and determined in the plaintiff's favor on July 18, 2002. The second phase on the issue of damages was tried on June 10, 2003. Both phases were tried before Hon Richard J. McAdams. The plaintiff was given judgment against the defendant in the amount of $406,000 plus prejudgment interest of $156,879 with interest accruing at the rate of $111 each day beginning on June 19, 2003 until entry of judgment. The plaintiff was also awarded costs and attorney fees, making the total amount of the judgment $666,251.
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