Fall River Trust Co. v. B. G. Browdy, Inc.
| Citation | 346 Mass. 614,195 N.E.2d 63,2 U.C.C.Rep.Serv. 1 |
| Parties | , 2 UCC Rep.Serv. 1 FALL RIVER TRUST COMPANY v. B. G. BROWDY, INC. |
| Decision Date | 07 January 1964 |
| Court | United States State Supreme Judicial Court of Massachusetts Supreme Court |
Alfred Sigel, Boston, for defendant.
William B. Sullivan, Fall River, for plaintiff.
Before SPALDING, WHITTEMORE, CUTTER, KIRK, and SPIEGEL, JJ.
This is the defendant's appeal from an order for judgment for the plaintiff for $7,596.93 in an action on assigned accounts. The defendant declared in set-off to the extent of the plaintiff's claim--in court 1 for the value of goods delivered to the plaintiff's assignor subject to the defendant's order and not returned, and in court 2 for money had and received.
The case was heard in the Superior Court on the facts set out in a report of an auditor whose findings were not to be final. It was stipulated, however, that the facts set forth in the report were 'the sole and only facts to be considered' by the judge, 'the said facts being agreed upon.'
The agreement as to the facts presented a case stated. Quintin Vespa Co. Inc. v. Construction Serv. Co., 343 Mass. 547, 551-552, 179 N.E.2d 895. It is our duty to order the correct judgment on the auditor's report. Ibid. We may draw inferences. G.L. c. 231, § 126. The facts, however, are inadequate for a conclusion.
The facts shown by the auditor's scanty report are these: Watuppa Finishing Corp. (Watuppa) was engaged in the dyeing and finishing business in Fall River and was adjudicated a bankrupt in July of 1959. The defendant (Browdy) from time to time delivered goods to Weatuppa for dyeing and finishing. 'Watuppa had an arrangement with the bank under which the bank advanced money from time to time and took assignments of accounts receivable as security and notified Browdy of the assignment in each instance before payment, and payment was made by Browdy to the bank in each instance, excepting the unpaid accounts' in litigation. These are the accounts outstanding at the time of the bankruptcy in the amount of $9,496.16 assigned as security for advances of $7,596.93. The accounts represent work done on goods delivered to Watuppa between February 6, 1959, and June 6, 1959. These accounts were assigned to the bank on various days from June 12 through June 26, 1959.
The auditor found that Watuppa had received from Browdy 89,199 yards of goods valued at $42,393.10, that these goods had not been returned, and that 'Watuppa owes Browdy at least $7,596.93 * * *.' The financing statements required by G.L. c. 106, § 9-302(1), were duly executed and filed October 8, 1958.
The case is governed by G.L. c. 106, § 9-318(1). Browdy contends that it is to be inferred that the $42,393.10 represents the goods delivered to Watuppa between February 6, 1959, and June 6, 1959. If this were so and the missing goods were processed under the contracts which gave rise to the assigned accounts, it would make no difference when the plaintiff gave Browdy notice of the assignment. The rights of the assignee would be subject to any defence or claim arising from the terms of the bailment contract between the assignor and the account debtor regardless of notice. G.L. c. 106, § 9-318(1)(a). However, the auditor's report does not show whether the missing goods were processed under the contracts which gave rise to the assigned accounts. The facts stated are insufficient satisfactorily to...
To continue reading
Request your trial
-
In re Calore Express Co., Inc.
...See Graves Equip., Inc. v. M. DeMatteo Constr. Co., 397 Mass. 110, 489 N.E.2d 1010, 1011 (1986); Fall River Trust Co. v. B.G. Browdy, Inc., 346 Mass. 614, 195 N.E.2d 63, 64 (1964). The bankruptcy court then proceeded to apply section 9-312(5) of that Article. Section 9-312(5) accords priori......
-
Gore v. Daniel O'Connell's Sons, Inc.
...318 Mass. 599, 601, 63 N.E.2d 466 (1945). Kalika v. Munro, 323 Mass. 542, 83 N.E.2d 172 (1948). Fall River Trust Co. v. B.G. Browdy, Inc., 346 Mass. 614, 617, 195 N.E.2d 63 (1964). Cf. Pereira v. New England LNG Co., 364 Mass. 109, 114-115, 301 N.E.2d 441 (1973); Treasurer of Essex County v......
-
Michelin Tires (Canada), Ltd. v. First Nat. Bank of Boston
...of action against the assignee. No Massachusetts court has ruled directly on this question. In Fall River Trust Co. v. B. G. Browdy, Inc., 346 Mass. 614, 195 N.E.2d 63, 2 U.C.C.Rep.Serv. 1 (1964), however, the Massachusetts Supreme Judicial Court indicated that an account debtor could asser......
-
Great Southern Nat. Bank v. McCullough Environmental Services, Inc., 89-CA-0161
...Finally, an account-debtor has available to him or her various defenses against an assignee. See, e.g., Fall River Trust Co. v. B.G. Browdy, Inc., 346 Mass. 614, 195 N.E.2d 63, 64 (1964). In addition to the defense of failure to provide adequate notice, fraud and misrepresentation in the cr......