Community Bank v. Newmark & Lewis, Inc.

MEMORANDUM AND ORDER

NEAHER, District Judge.

Plaintiff, a California banking corporation, brought this diversity action to recover account receivables totaling $126,969.60 plus interest, allegedly owed by defendant New-mark & Lewis (“Newmark”) to Jennings Research, Inc. (“Jennings”) for hi-fidelity electronic components and related equipment Newmark allegedly ordered and received during 1977. Plaintiff claims it was authorized to collect the Newmark receivables, represented by Jennings invoices, pursuant to a security agreement in reliance on which it made loans to Jennings on which Jennings…