Breach of lending agreement, guarantor won't pay; $871,000. Los Angeles County.


Lender on accounts receivable (factor) goes after guarantor when business defaults on loan. 

The Case

  • Case Name: A-1 Business Products, Inc. v. Paul A. Wiebel
  • Court and Case Number: Los Angeles Superior Court / SC117797
  • Date of Verdict or Judgment: Tuesday, November 10, 2015
  • Date Action was Filed: Wednesday, July 18, 2012
  • Type of Case: Breach of Contract
  • Judge or Arbitrator(s): Phase 1 - Hon. Richard Stone; Phase 2 - Hon. Lawrence Cho
  • Plaintiffs:
    A-1 Business Products, Inc.
  • Defendants:
    Paul A. Wiebel
  • Type of Result: Jury Verdict

The Result

  • Gross Verdict or Award: $871,803
  • Net Verdict or Award: $871,803
  • Award as to each Defendant:

    $871,803 against Paul A. Wiebel

  • Contributory/Comparative Negligence: None.
  • Economic Damages:


  • Trial or Arbitration Time: Phase one of the case re: statute of limitations was tried without a jury over a three-day period. Phase two of the case was tried to a jury over nine days.
  • Jury Deliberation Time: 5 hours over two days
  • Jury Polls: 12-0
  • Post Trial Motions & Post-Verdict Settlements: JNOV by Defendant - Denied; Prevailing Party by Defendant - Denied; Prevailing Party by Plaintiff - Granted; Motion for New Trial by Defendant - Pending; Motion for Attorney Fees by Plaintiff - Pending.

The Attorneys

  • Attorney for the Plaintiff:

    Gershuni Law Firm by Gregory Gershuni, Los Angeles.

  • Attorney for the Defendant:

    Vivoli Saccuzzo LLP by MIchael Vivoli, San Diego.

    The Marchese Law Firm, LLC by Daniel Marchese, Newton, New Jersey.

The Experts

  • Plaintiff's Technical Expert(s):

    Jay Mangel, CPA, Sherman Oaks.

    Bryan La Rock, computer forensics, El Segundo.

    Donald Nunnari, factoring, Los Angeles.

  • Defendant's Technical Expert(s):

    Francis Christian DeVito, CPA/fraud examination, New Jersey.

Facts and Background

  • Facts and Background:

    Plaintiff/lender (a factor for accounts receivable) advanced money to debtor pursuant to factoring agreement over a seven-year period; defendant guaranteed debtor's obligations; debtor defaulted; guarantor failed and refused to honor guaranty.

  • Plaintiff's Contentions:

    Plaintiff contended that $3.8 million was owed on underlying outstanding debt inclusive of interest through date of jury deliberations; that defendant's liability was uncontestable.

  • Defendant's Contentions:

    Defendant/guarantor contended that nothing was owed because of alleged careless lending practices, modification of the debtor's obligations without prior consent & notice to defendant/guarantor, and expiration of statute of limitations; defendant further contended that if any money was due and owing it could not exceed $200,000.