Marble Bridge Funding Group, Inc. v. Euler Hermes American Credit Indemnity Co.

ORDER GRANTING IN PART AND DENYING IN PART DEFENDANT’S MOTION FOR SUMMARY JUDGMENT

This case stems from a type of commercial financing known as “factoring” and the variety of insurance unique to that industry. Plaintiff Marble Bridge Funding Group (“MBFG”) is a “factor,” or a company that provides accounts receivable financing to growing businesses that sell their products or services to other businesses. First Am. Compl. (“FAC”), Dkt No. 176, at ¶ 3. Defendant Euler Hermes American Credit Indemnity Company (“Euler”) sells credit or trade insurance, which is “purchased by sellers of goods or services to insure their accounts receivea-ble should the debtors on ther receiveables fail to pay.” Id. at ¶ 4.

MBFG alleges in this action that it was induced by Euler to purchase accounts receivable invoices from another business, Nature’s Own, Inc. or Nature’s Own Pharmacy LLC (“Nature’s Own”). 1 Nature’s Own turned out to be a fraud, and Euler, who had insured Nature’s Own accounts receivable, did not pay MBFG’s claims on the policy once the scheme was discovered.

Federal jurisdiction arises pursuant to 28 U.S.C. § 1332 . Presently before the court is Euler’s Motion for Summary…