BDI Distributors, Inc. v. Beaver Computer Corp.

Judge Harold R. Banke.

Beaver Computer Corporation (“Beaver”) sued BDI Distributors, Inc. (“BDI”) for an unpaid balance on a sales account. BDI counterclaimed against Beaver for fraudulent inducement and breach of an agreement underlying the account. BACI Service Corporation (“BACI”), who became the owner of Beaver’s accounts receivable after a foreclosure sale, was later substituted for Beaver.

The underlying dispute arose after BDI received various notebook computers and computer equipment from Beaver, a California company. According to BDI, when it contracted with Beaver to purchase these…