Logan Paving Co. v. Massey-Ferguson Credit Corp., MASSEY-FERGUSON

CourtUnited States Court of Appeals (Georgia)
Writing for the CourtBENHAM; BANKE, P.J., and POPE
Citation323 S.E.2d 259,172 Ga.App. 368
Docket NumberNo. 68457,MASSEY-FERGUSON
Decision Date12 October 1984
Parties, 40 UCC Rep.Serv. 116 LOGAN PAVING COMPANY v.CREDIT CORPORATION et al.

Page 259

323 S.E.2d 259
172 Ga.App. 368, 40 UCC Rep.Serv. 116
LOGAN PAVING COMPANY

v.
MASSEY-FERGUSON CREDIT CORPORATION et al.
No. 68457.
Court of Appeals of Georgia.
Oct. 12, 1984.

[172 Ga.App. 370] J. Edward Allen, Athens, for appellant.

James P. Smith, Ronald C. Thomason, Macon, for appellee.

[172 Ga.App. 368] BENHAM, Judge.

Plaintiff-appellant, Logan Paving Company d/b/a Logan Equipment Company ("Logan"), brought an action for declaratory judgment against defendant-appellee, Massey-Ferguson, Inc. ("Massey-Ferguson"), and Massey-Ferguson Credit Corporation to determine which party had superior rights to the proceeds of the sale of a certain Massey-Ferguson tractor. The case was tried before the court without a jury under the following stipulated facts. In February of 1981, Logan was the fee simple owner of the tractor in question.

Page 260

Sometime thereafter, Logan delivered the tractor to Davis Tractor Company ("Davis"), an authorized Massey-Ferguson dealership, to sell for Logan because Davis was located in a more advantageous market. Davis' inventory was financed by Massey-Ferguson pursuant to a Dealer Sale and Service Agreement, and Massey-Ferguson's interest in Davis' inventory was perfected by the proper filing of financial statements. Logan was not advised of any agreements between Davis and Massey-Ferguson, and title to the tractor was never transferred to Davis from Logan. In April 1982, Davis informed Massey-Ferguson that it had obtained the tractor as a trade-in. The tractor was placed in Davis' Trade-In Used Floor Plan and Davis received a credit of $18,700 on its outstanding balance due Massey-Ferguson. In August 1982, Massey-Ferguson terminated its dealership arrangement and security agreement with Davis, at which time the tractor was in Davis' possession and appeared on the inventory list delivered to Massey-Ferguson by Davis. When a dispute arose between Logan and Massey-Ferguson as to their conflicting rights in the tractor, it was sold, the proceeds placed in escrow, and this action for declaratory judgment filed.

After reviewing the pleadings and depositions, the trial court found, in addition to the stipulated facts set forth above, that Davis was not generally known by its creditors to be substantially engaged in selling the goods of others. The court then concluded as a matter of law that the transaction between Davis and Logan was a "sale or return" governed by OCGA § 11-2-326(3), and held that the claim of [172 Ga.App. 369] Massey-Ferguson was superior to that of Logan. Logan appeals from the judgment subsequently entered.

The Uniform Commercial Code (UCC) as adopted in this state provides in pertinent part as follows: "(3) Where goods are delivered to a person for sale and...

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9 practice notes
  • Loring v. Bellsouth Advertising & Pub. Corp., No. 70673
    • United States
    • United States Court of Appeals (Georgia)
    • December 5, 1985
    ...bound by the trial court's findings if there is "any evidence" to support them, see Logan Paving Co. v. Massey-Ferguson Credit Corp., 172 Ga.App. 368, 370, 323 S.E.2d 259 (1984), and because there was some evidence to support the trial court's findings that appellee is a private enterprise ......
  • Matter of High-Line Aviation, Inc., Bankruptcy No. A91-77924-ADK to A91-77926-ADK
    • United States
    • United States Bankruptcy Courts. Eleventh Circuit. U.S. Bankruptcy Court — Northern District of Georgia
    • December 18, 1992
    ...goods of others and was generally known by its creditors to be engaged in such sales. Logan Paving Co. v. Massey-Ferguson Credit Corp., 172 Ga.App. 368, 370, 323 S.E.2d 259 (1984). Tony Martin, an officer of HAL, testified in his deposition that from 1981 to 1991 approximately 5% to 10% of ......
  • In re Sullivan, Bankruptcy No. 88-01920-ETH.
    • United States
    • United States Bankruptcy Courts. Fifth Circuit. U.S. Bankruptcy Court — Northern District of Mississippi
    • June 30, 1989
    ...v. Haas, 189 Cal.App.3d 1640, 235 Cal.Rptr. 200, 3 U.C.C. Rep.Serv.2d 547 (1987); Logan Paving Co. v. Massey-Ferguson Credit Corp., 172 Ga.App. 368, 323 S.E.2d 259, 40 U.C.C. Rep.Serv. 116 (1984); see also, 8 Anderson on the Uniform Commercial Code § 9-114:4 This Court adopts the view of th......
  • Minor v. Stevenson, No. E007231
    • United States
    • California Court of Appeals
    • February 28, 1991
    ...Connection v. Haas, supra, 189 Cal.App.3d at p. 1646, 235 Cal.Rptr. 200, quoting Logan Paving v. Massey-Ferguson Credit Corp. (1984) 172 Ga.App. 368, 323 S.E.2d 259, 260-261.) Section 2326 paints a broad stroke when the interests of naive creditors are at stake and section 2511 cannot contr......
  • Request a trial to view additional results
9 cases
  • Loring v. Bellsouth Advertising & Pub. Corp., No. 70673
    • United States
    • United States Court of Appeals (Georgia)
    • December 5, 1985
    ...bound by the trial court's findings if there is "any evidence" to support them, see Logan Paving Co. v. Massey-Ferguson Credit Corp., 172 Ga.App. 368, 370, 323 S.E.2d 259 (1984), and because there was some evidence to support the trial court's findings that appellee is a private enterprise ......
  • Matter of High-Line Aviation, Inc., Bankruptcy No. A91-77924-ADK to A91-77926-ADK
    • United States
    • United States Bankruptcy Courts. Eleventh Circuit. U.S. Bankruptcy Court — Northern District of Georgia
    • December 18, 1992
    ...goods of others and was generally known by its creditors to be engaged in such sales. Logan Paving Co. v. Massey-Ferguson Credit Corp., 172 Ga.App. 368, 370, 323 S.E.2d 259 (1984). Tony Martin, an officer of HAL, testified in his deposition that from 1981 to 1991 approximately 5% to 10% of ......
  • In re Sullivan, Bankruptcy No. 88-01920-ETH.
    • United States
    • United States Bankruptcy Courts. Fifth Circuit. U.S. Bankruptcy Court — Northern District of Mississippi
    • June 30, 1989
    ...v. Haas, 189 Cal.App.3d 1640, 235 Cal.Rptr. 200, 3 U.C.C. Rep.Serv.2d 547 (1987); Logan Paving Co. v. Massey-Ferguson Credit Corp., 172 Ga.App. 368, 323 S.E.2d 259, 40 U.C.C. Rep.Serv. 116 (1984); see also, 8 Anderson on the Uniform Commercial Code § 9-114:4 This Court adopts the view of th......
  • Minor v. Stevenson, No. E007231
    • United States
    • California Court of Appeals
    • February 28, 1991
    ...Connection v. Haas, supra, 189 Cal.App.3d at p. 1646, 235 Cal.Rptr. 200, quoting Logan Paving v. Massey-Ferguson Credit Corp. (1984) 172 Ga.App. 368, 323 S.E.2d 259, 260-261.) Section 2326 paints a broad stroke when the interests of naive creditors are at stake and section 2511 cannot contr......
  • Request a trial to view additional results

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