Pre-Banc Business Credit v. Vector Resources CA4/3

FACTS

Pre-Banc is an asset-based lender that provides financing to businesses. In exchange for the financing, borrowers assign their accounts receivables to Pre-Banc. Pre- Banc then notifies the account debtors to pay any outstanding or future invoices directly to Pre-Banc. Rudy assigned its accounts receivables to Pre-Banc in exchange for financing. In turn, Pre-Banc notified Rudy’s account debtors, one of which was Vector, of the assignment. The notice stated, “[Rudy] has assigned all payments for present and future invoices directly to Pre-Banc,” “California law requires that your payment be made directly to Pre-Banc,” and “[p]ayment made directly to [Rudy] does not discharge your obligation to pay Pre-Banc . . . .” Pre-Banc contends that, despite receiving this notice, Vector continued to make payments directly to Rudy. As part of its efforts to collect these funds, Pre-Banc sought a right to attach order and a writ of attachment against Vector. In support of its application, Pre-Banc submitted a copy of the notice sent to Vector, purchase orders between Vector and Rudy, invoices from Rudy to Vector, and checks dated after it sent the notice reflecting payments made from…