21st Capital Corp. v. Onodi Tooling & Engineering Co. CA2/3

INTRODUCTION

Plaintiff and appellant 21st Capital Corporation, a factoring company, advanced money to nonparty Motor City in exchange for an assignment of Motor City’s accounts receivable, including the account of defendant and respondent Onodi Tooling & Engineering Company. When Onodi failed to pay invoices it contended were fraudulently created by Motor City, 21st Capital sued Onodi, claiming 21st Capital was a holder in due course of the accounts receivable and that Onodi had waived its defenses to payment, under California’s Uniform Commercial Code.1 After a bench trial, the trial court found in Onodi’s favor, specifically crediting Onodi’s evidence and finding 21st Capital’s computer evidence unreliable. On appeal, 21st Capital contends, in a misapplication of the standard of review, that there is substantial evidence to support judgment in its favor. Because substantial evidence supports the judgment in Onodi’s favor, we affirm.

FACTUAL AND PROCEDURAL BACKGROUND2

I. Factual background.

Onodi builds parts for the United States military. Under a master solicitation agreement, Prosperity Invest, Inc., doing business as Motor City (Motor City), agreed to paint those…