Hanover Insurance v. Fremont Bank

ORDER DENYING MOTION TO DISMISS [DOCKET NO. 15]

Before the court is a motion to dismiss filed by Defendant Fremont Bank (the “Bank”). [Docket No. 15.] The court held a hearing on the motion on July 31, 2014. For the reasons stated below and at the hearing, the motion is denied.

I. BACKGROUND

A. The Bank’s Loans to Legg

The Bank made business loans to a construction contractor called Legg, Inc. Am. Compl. [Docket No. 10] at ¶ 8. Those loans were secured by collateral that included Legg’s accounts receivable. Id. The Bank recorded a UCC Financing Statement with the California Secretary of State in 2005, and a continuation of the UCC Financing Statement in 2009, to perfect a security interest in the collateral. Id.\ see also Fremont Bank’s Request for Judicial Notice [“FRJN,” Docket No. 18] Ex. M (UCC Financing Statements dated April 28, 2005 and October 29, 2009).

*1093 B. Hanover’s Involvement with the Bonded Projects

Legg was involved with separate projects for (1) the City of Livermore, for an office remodel, and (2) the Burke Construction Group, Inc., for an expansion of the SDCC. 2 Am. Compl. at ¶ 7. Plaintiff Hanover Insurance Co. (“Hanover”) is a surety company that…