[RPPTL-constructionlaw] UCC Factoring Agreements and Subs Gone Out of Business

[Croom, Janet]

Hypothetical:  Client is Sub which has Sub-Sub that goes out of
business.  Before going out of business, Sub-Sub retains Accounts
Receivable company.  Pursuant to UCC/Florida statutes, Sub makes
payments to A/R firm, but accidently pays Sub-Sub 2 times.  Sub-Sub
gone.  A/R company pursuing Sub for 2 "unauthorized" payments made
directly to Sub-Sub, rather than A/R company.  Additional facts which
may/may not be relevant:  Bonded job; Request for Sworn Statement of
Account and 10 Day Written Notice Of Intent To Pay were served on
Sub-Sub before it went out of business, with no response, but I am not
sure any of that matters in the UCC world.  Close to 6 figures at stake
for Sub having to essentially "pay twice."

 

Query:  Anyone been successful in protecting construction client that is
being pursued by an A/R "factoring" company under the UCC/Florida
statutes?   

 

 

Janet Carney Croom, Esquire

Board Certified - Construction Law 

Board Certified - Business Litigation

Collins, Brown, Caldwell, Barkett & Garavaglia, Chartered

756 Beachland Boulevard

Vero Beach, FL  32963

Telephone:  772-231-4343

Fax:  772-234-5213

jcroom at verolaw.com <blocked::mailto:jburgess at verolaw.com> 

http://www.verolaw.com <blocked::mailto:www.cbc at verolaw.com> 

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