SAN DIEGO – A London business is seeking declaratory relief in a dispute with an Oceanside limited liability company.
ECI 8 LP filed a complaint on Sept. 23 in the U.S. District Court for the Southern District of California against Monterey Financial Services LLC, Monterey Receivables Funding LLC, and Monterey Financial Services Inc. Profit Sharing Plan and Trust citing breach of contract, conversion, intentional interference with contractual relationship and other counts.
According to the complaint, the plaintiff alleges that on Aug. 19, 2014, Premier Baths was formerly engaged in the business of selling and installing walk-in bath tubs for its clients, and it entered an agreement with the defendants to sell its accounts receivables to defendants at a discount. On Oct. 10, 2014, plaintiff alleges it also entered into a receivables purchase agreement with Premier Baths and has paid $1,700,000 for the receivables, consequently, Premier Baths requested that defendants service the receivables purchased by plaintiff and remit the proceeds directly to ECI. The suit states that the current dispute is that the defendants ceased to remit proceeds to the plaintiff starting March 8, which allegedly caused damages to plaintiff's business and goodwill.
The plaintiff holds Monterey Financial Services LLC, Monterey Receivables Funding LLC and Monterey Financial Services Inc. Profit Sharing Plan and Trust responsible because the defendants allegedly failed to interpret its rights under agreement, refused to remit collection due to plaintiff and converted plaintiff's receivables as servicing contracts to make it a part of its collateral.
The plaintiff requests a trial by jury and seeks judgment in its favor, determine that the amended ECI receivables are not servicing contracts, award damages, order accounting of collections and outstanding amount, interest, costs, expenses and further relief as the court deems just. It is represented by Emma E. Jacobson of Squire Patton Boggs in Los Angeles and Mark A. Salzberg of Squire Patton Boggs in Washington, D.C.
U.S. District Court for the Southern District of California Case number 3:16-cv-02393