Rosenthal & Rosenthal, Inc. v. Vanessa Benun(076266)

Judge CUFF

(temporarily assigned) delivered the opinion of the Court.

This appeal addresses the priority of mortgages given to secure financing for a group of related commercial entities. A factor purchased accounts receivable, advanced funds to the commercial entities, and agreed to make optional future advances. The financing was secured by personal guaranties and mortgages on the home of a guarantor. Each mortgage was capped at $1 million.

Before the factor made additional advances to the commercial entities, it received actual notice that a law firm representing the principal of the…