Kennedy v. Healthstone Staffing, LLC, 2009 WL 281777 (Cal.App. 1 Dist.) Feb. 6, 2009 (Not Officially Published -- See Cal. Rules of Court, Rules 8.1105, 8.1110, 8.1115) Accounts receivable are valuable assets, and commonly used as collateral to secure loans. Lenders...
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Conspicuous Disclosure Under UCC 1-201(10)
Broberg v. Guardian Life Ins. Co. of America (March 2, 2009) 90 Cal. Rptr. 225, 2009 Daily Journal D.A.R. 2983 Broberg is an insurance case. The insured claimed fraud and misrepresentation in connection with the sale of the policy. The insurer said it had disclosed...
The “Cardinal” Rule: No “More Than Four” Year Statute of Limitations Period Under UCC 2-725 Without Specific Time Reference
Cardinal Health 301, Inc. v. Tyco Electronics Corp., (2008) 169 Cal. Ap. 4th 116, 87 Cal. Rptr. 3d 5. Cardinal Health manufactured medicine-dispensing cabinets for use in hospitals. When these suffered repeated malfunctions, Cardinal sued the suppliers of the...
Excluding Lost Profits and Consequential Damages Under UCC 2-719: Too Much of a Good Thing?
Whittlestone, Inc. v. Handi-Craft Company 2008 WL 4963053 (USDC, N. D. Ca. Nov. 19, 2008) Buyers and sellers often limit the damages recoverable for breach contract in sale of goods cases. Under UCC 2-709(3) such limitations are enforceable, with exceptions for...
Sun-Dried Tomatoes, Anyone? Seller Recovery on Buyer Breach: Damages Based on A Lost-Volume Seller Theory UCC 2-702(2)
Culinary Farms, Inc. v. Mooney, 2008 WL 4889621 (Cal. App 3 Distr. Nov. 13, 2008) (Not Officially Published- Non Citable) This case concerned the appropriate measure of damages where a buyer failed to complete the purchase of sun-dried tomatoes. Although the seller...
Unsecured Creditor’s Levy on Deposit Account Defeats Prior Secured Creditor–UCC 9-332(b)
In a reported case of first impression under California law, the California Court of Appeal, First District, Division 5 ruled that an unsecured creditor's garnishment or levy on funds in a deposit account will defeat the prior secured creditor. Orix Financial...
UCC Warranty Limitations–New Article in Orange County Lawyer Magazine
Our blogger Gregory E. Robinson published an article in the October 2008 edition of Orange County Lawyer Magazine, the official publication of the Orange County [California] Bar Association. "Beyond the Battle of the Forms--UCC Warranty Limitations: 'How to Make 'Em...
Implied and Express Warranty Claims: Duck Feet Have No Class
The Central District of California recently denied class certification in a lawsuit alleging breach of express warranty and implied warrant of merchantability. Gable v. Land Rover of North America, 2008 WL 4441960 (C. D. Cal. Sept. 29, 2008)--not reported in F. Supp....
Statute of Limitations—Student Loans—6 years under Section 3-118
When enforcing or defending an action on a promissory note, remember that the UCC may specify a longer statue of limitations. A student borrower tried to block enforcement of her student loans by asserting the basic 4-year statute of limitations for breach of written...
Arbitration Wars and the UCC – Unconscionability and Limits on the Arbitrator’s Powers
A recent California appeals court decision highlighted some interesting issues concerning the interplay between arbitration and the Uniform Commercial Code. The case is J.C. Gury Company v. Nippon Carbide Insurance (USA) Inc. (2007) 152 Cal. App. 4th 1300, 62 Cal....