Legal Question in Civil Litigation in California
Civil lawsuit on loan of money
Party A is a LLC. Party B and C are individuals. If A has a contract with B for a loan of money. B gives money to C to give to A. A has been paying B then went out of business with four payments left. B is suing A for breach of contract. A going over the books and found out C did not put full amount into A's account. Does A have to pay B back as no proof B gave A any money. No cancelled check or deposit slip in A and B names. C was A's bookkeeper. Is there a case for A to sue B for nonpayment of loan and get money back that has been paid.
1 Answer from Attorneys
Re: Civil lawsuit on loan of money
This is a little confusing. Here is how I understand the facts:
A borrowed $$ from B.
B gave the money to C.
C was supposed to give the money to A.
A was making payments to B, then stopped before A finished paying B.
A discovered that C did not give A all of the $$ borrowed from B.
There are a lot of open questions in these facts.
The basic rule is, look to the agreement. Without seeing the agreement, I can only guess.
Assuming that the agreement was that A would borrow $$ from B, and that B would give that money to C, then A owes B the $$ regardless of what C did with the $$. A may have a claim against C.
If there is a dispute as to whether B tendered the $$ to C, then that needs to be resolved first.
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