Buyer In Ordinary Course Of Business

51 Florida cases classified under this topic · sorted by citation count · see the citation graph · browse and sort

• United States v. Hext
  444 F.2d 804· 5th Cir.· 1971-06-25 ·cited 36×
  The court held that buyers in the ordinary course of business, who purchased cotton from a gin owned by the farmer who granted the FHA a security interest, took the cotton free of that security interest under UCC § 9-307(1). Consequently, intermediaries who facilitated the sale w
• Johnson & Kirby, Inc. v. Citizens Nat'l Bank OF Fort Lauderdale
  338 So. 2d 905· Fla. 3d DCA· 1976-11-02 ·cited 34×
  Johnson & Kirby, Inc. appeals from a summary judgment in favor of Citizens National Bank in a replevin action over two boats. The court reversed, holding that a genuine issue of material fact existed regarding whether Johnson & Kirby was a buyer in the ordinary course of business
• Correria v. The Orlando Bank & Tr. Co. & William C. Hooker, Jr.
  235 So. 2d 20· Fla. 4th DCA· 1970-05-06 ·cited 26×
  A purchaser of a used automobile from a dealer acquired clear title free of a bank's security lien, despite the bank holding the certificate of title. The court held that under the Uniform Commercial Code, a buyer in the ordinary course of business from a merchant dealer takes fr
• Indep. News Co., Inc. v. Williams
  293 F.2d 510· 3d Cir.· 1961-06-06 ·cited 21×
  A buyer in the ordinary course of business acquires all rights in goods entrusted to a merchant, even if the seller breaches a contract with the original owner. Reselling lawfully obtained copyrighted material does not constitute infringement.
• In re Gary Aircraft Corp. v. Gen. Dynamics Corp.
  681 F.2d 365· 5th Cir.· 1982-07-28 ·cited 16×
  The Federal Aviation Act establishes a national recording system but does not preempt state law regarding the priority of security interests in aircraft. A buyer in the ordinary course of business under state law takes free of a perfected security interest, and this protection ex
• The First Nat'l Bank & Tr. Co. OF Okla. City v. Iowa Beef Processors, Inc.
  626 F.2d 764· 10th Cir.· 1980-07-14 ·cited 16×
  A secured party's conditional consent to sell collateral, even if conditioned on receiving proceeds, cuts off the security interest if the buyer is in the ordinary course of business. A buyer's claim of set-off is subordinate to a perfected security interest in the proceeds.
• Dr. E.G. Fischer v. BAR Harbor Banking & Tr. Co.
  857 F.2d 4· 1st Cir.· 1988-09-09 ·cited 12×
  The court affirmed the district court's summary judgment, holding that the Bank was conditionally privileged to assert a lien and that the plaintiff failed to establish actual malice.
• Fla. Dep't OF Corr. v. Blount Pontiac-Gmc, Inc.
  411 So. 2d 930· Fla. 1st DCA· 1982-03-18 ·cited 11×
  The Florida Department of Corrections purchased a fire truck from Ward LaFrance, which had obtained the chassis and cab from Blount Pontiac-GMC without immediately paying or receiving the manufacturer's statement of origin (MSO). When Ward LaFrance went bankrupt before paying Blo
• Carlsen v. Coradino Rivera
  382 So. 2d 825· Fla. 4th DCA· 1980-04-16 ·cited 11×
  A lessor who entrusts goods to a merchant dealing in such goods empowers that merchant to transfer good title to a buyer in the ordinary course of business, even if the merchant obtained possession through fraud.
• United States v. McCLESKEY Mills, Inc.
  409 F.2d 1216· 5th Cir.· 1969-04-02 ·cited 10×
  A buyer of farm products from a farmer is not a buyer in the ordinary course of business and takes subject to a perfected security interest, allowing the secured party to recover for conversion.
• Ernie Passeos, Inc. v. Kevin O'Halloran for Keller Fin. Servs. of Fla., Inc.
  855 So. 2d 106· Fla. 2d DCA· 2003-07-09 ·cited 9×
  Ernie Passeos, Inc., an Ohio Harley Davidson dealer, appeals a jurisdictional order finding Florida courts had personal jurisdiction over it in a conversion action filed by Keller Financial Services regarding motorcycles purchased from a now-defunct Florida dealer. The court reve
• United States v. Progressive Farmers Mktg. Agency
  788 F.2d 1327· 8th Cir.· 1986-04-15 ·cited 8×
  A livestock marketing agency acting as a commission merchant is not liable for conversion of farm products when selling them in the ordinary course of business, as they are considered inventory, not farm products, under the UCC.
• O'Neill v. Barnett Bank OF Jacksonville
  360 So. 2d 150· Fla. 1st DCA· 1978-06-30 ·cited 8×
  A properly registered security interest in an aircraft under federal law is superior to a subsequent buyer's interest, even if the buyer is considered in the ordinary course of business under state law.
• Green Tree Acceptance, Inc. v. Zimerman
  611 So. 2d 608· Fla. 2d DCA· 1993-01-13 ·cited 7×
  A buyer of a motor vehicle does not acquire title free of a prior lien if the lienholder did not entrust possession of the vehicle to a merchant who deals in such vehicles, and the buyer failed to inquire about the title's condition.
• United States v. Handy AND Harman
  750 F.2d 777· 9th Cir.· 1984-12-28 ·cited 6×
  A buyer who satisfies a debt by offsetting a pre-existing debt against the purchase price does not qualify as a buyer in ordinary course of business under UCC § 1201(9) and cannot take collateral free of a perfected security interest. However, such a buyer may still have priority
• Kinetics Tech. Int'l Corp. v. The Fourth Nat'l Bank OF Tulsa
  705 F.2d 396· 10th Cir.· 1983-04-14 ·cited 6×
  A bank's perfected security interest in a debtor's inventory attaches to goods delivered to the debtor for incorporation into a product, even if title remains with the supplier, and a sale of such goods in the ordinary course of the debtor's business is authorized, allowing the b
• Martin Marietta Corp. v. NEW Jersey Nat'l Bank
  653 F.2d 779· 3d Cir.· 1981-06-30 ·cited 6×
  The Third Circuit affirmed in part and remanded in part the district court's judgment. The court held that the sale of sand was not a bulk transfer and that the seller's retention of possession was not fraudulent. However, the court remanded the case to determine whether the buye
• Milnes v. Gen. Elec. Credit Corp.
  377 So. 2d 725· Fla. 3d DCA· 1979-11-20 ·cited 6×
  A lienholder (GECC) entrusted a motor home to a merchant dealer (American R.V.) for sale to satisfy its lien. The merchant sold the motor home to the Milnes without satisfying the prior lien, and GECC sued to foreclose. The court held that a buyer in the ordinary course of busine
• Morey Mach. Co., Inc. v. Great W. Indus. Mach. Co.
  507 F.2d 987· 5th Cir.· 1975-02-07 ·cited 6×
  A document can serve as both a financing statement and a security agreement if it creates a security interest and is signed by the debtor. A buyer with actual notice of a prior security interest is not a buyer in the ordinary course of business.
• Stroman v. The Orlando Bank & Tr. Co.
  239 So. 2d 621· Fla. 4th DCA· 1970-09-30 ·cited 6×
  The Orlando Bank & Trust Company sought to foreclose a lien on a used car purchased by Stroman from a dealer named Hooker. The appellate court reversed, holding that Hooker, having already sold and delivered the vehicle to Stroman, had no remaining interest he could subject to a
• Swift & Co. v. Jamestown Nat'l Bank
  426 F.2d 1099· 8th Cir.· 1970-05-21 ·cited 6×
  The court held that the Bank's security interest was not perfected against Swift, a buyer in the ordinary course of business, because the Bank failed to file in the proper place and authorized the sale of the collateral. The Bank wrongfully converted Swift's cattle.
• Alamo Rent-A-Car, Inc. v. Williamson Cadillac Co.
  613 So. 2d 517· Fla. 3d DCA· 1993-01-19 ·cited 4×
  Alamo Rent-a-Car appeals a summary judgment favoring Williamson Cadillac, which purchased a car that had been fraudulently retitled by a lessee. The court reverses, holding that the lessee could not pass good title to Williamson because Alamo did not 'entrust' the vehicle to a me
• The United States v. Cont'l Ill. Nat'l Bank & Tr. Co. OF Chicago (individually & as agent for The Bank of Cal., N.A.
  889 F.2d 1248· 2d Cir.· 1989-11-16 ·cited 4×
  The court held that the "buyer in the ordinary course of business" defense is an affirmative defense, and that the lower courts abused their discretion by denying the appellant leave to amend its answer to assert this defense.
• Preston v. United States
  696 F.2d 528· 7th Cir.· 1982-12-29 ·cited 4×
  The court held that the government's actions in withdrawing grain from a warehouse experiencing a shortage constituted conversion under Wisconsin law, and the discretionary function exception to the FTCA did not apply.
• Rawl's Auto Auction Sales, Inc. v. Dick Herriman Ford, Inc.
  690 F.2d 422· 4th Cir.· 1982-10-08 ·cited 4×
  The court held that withholding title certificates prevented ownership transfer to Irvin, and thus to Rawl's, and that Rawl's was not a buyer in ordinary course due to its knowledge of Irvin's financial issues and deviation from its usual practices.
• Swift v. J. I. Case Co. & Fla. Tractor Mart, Inc.
  266 So. 2d 379· Fla. 1st DCA· 1972-07-18 ·cited 4×
  A merchant dealer purchasing a tractor in the ordinary course of business cannot take free of a perfected security interest without first making a good faith inquiry into the existence of prior recorded security interests.
• Toyomenka, Inc. v. Mount Hope Finishing Co.
  432 F.2d 722· 4th Cir.· 1970-09-18 ·cited 4×
  A bailee's unauthorized act of misbilling goods does not divest the bailor of title, and the bailee's negligence cannot be imputed to the bailor to create an estoppel against the bailor's claim.
• Gallagher v. The Unenrolled Motor Vessel River Queen (Hull NO. A-68184)
  475 F.2d 117· 5th Cir.· 1973-03-09 ·cited 3×
  The court held that entrusting a boat to a marina operator for stall rental does not grant the operator the power to transfer title to a buyer in the ordinary course of business under UCC § 2.403(b).
• Maroone Chevrolet, L.L.C. v. Suntrust Bank
  904 So. 2d 618· Fla. 4th DCA· 2005-06-22 ·cited 2×
  Maroone Chevrolet appeals a summary judgment ordering it to deliver a Manufacturer's Statement of Origin (MSO) to SunTrust Bank based on an alleged entrustment of a 2001 Chevrolet Camaro. The court reverses, holding that genuine issues of material fact exist regarding whether ent
• In re Woods Farmers Coop. Elevator Co. v. Carter
  946 F.2d 1411· 8th Cir.· 1991-10-24 ·cited 2×
  The court held that the bankruptcy trustee could not avoid the statutory liens because they were enforceable against a bona fide purchaser under North Dakota law, even if not against a buyer in the ordinary course of business.
• Crocker Nat'l Bank v. Ideco Div. OF Dresser Indus., Inc.
  889 F.2d 1452· 5th Cir.· 1989-11-29 ·cited 2×
  The court held that the transfer of engines back to the seller (Ideco) was not a sale in the ordinary course of business, and thus did not extinguish the buyer's secured party's (Crocker's) perfected security interest.
• Centerre Bank, N.A. v. NEW Holland Div. OF Sperry Corp.
  832 F.2d 1415· 7th Cir.· 1987-10-23 ·cited 2×
  The court held that Sperry retained a subordinate security interest in the proceeds of the sale, and conversion did not occur until demand was made.
• Sterling Nat'l Bank & Tr. Co. OF NEW York v. Southwire Co.
  713 F.2d 684· 11th Cir.· 1983-08-29 ·cited 2×
  A transfer of collateral to satisfy a pre-existing debt is not a sale in the regular course of business and is therefore not authorized under the security agreement, meaning the secured party's interest has priority over the transferee's claim.
• Walter E. Heller & Co. Se. v. Riviana Foods, Inc.
  648 F.2d 1059· 5th Cir.· 1981-06-26 ·cited 2×
  The court held that the transactions between Riviana and Amos did not constitute a 'sale or return' under Fla.Stat. § 672.2-326(3) because Amos lacked independent authority to sell Riviana's goods.
• Cosid, Inc. v. BAY Steel Prods. Co., Inc.
  252 So. 2d 274· Fla. 4th DCA· 1971-08-03 ·cited 2×
  Cosid seeks to replevy steel from Bay Steel, claiming Bay Steel acquired it under suspicious circumstances that should have triggered a duty to inquire into its origin. The court reverses summary judgment for Bay Steel and remands for trial to determine whether Bay Steel qualifie
• Hamilton Cnty. Bank v. Tuten
  250 So. 2d 17· Fla. 1st DCA· 1971-07-06 ·cited 2×
  Hamilton County Bank appealed a summary judgment in a replevin action where the trial court ruled that a good-faith buyer of a mobile home takes free of the bank's floor-plan financing lien. The appellate court affirmed, holding that under Florida law, a buyer in the ordinary cou
• Santana Equestrian Private Fin., LLC v. Richtmyer
  Fla. 4th DCA· 2022-09-14
• Santana Equestrian Private Fin., LLC v. Richtmyer
  Fla. 4th DCA· 2022-09-14
  Santana Equestrian purchased a competitive jumping horse from a merchant in the sport horse business and sought to retain possession against the original owner's replevin claim. The court held that under Florida's Uniform Commercial Code section 672.403, a good faith buyer in the
• Element Fin. Corp. v. Marcinkoski Gradall, Inc.
  215 So. 3d 1252· Fla. 4th DCA· 2017-03-29
  Element Financial Corp. appeals a trial court judgment finding it did not have a perfected security interest in Bobcat vehicles. The Fourth District Court of Appeal reverses, holding that a guarantor is not a "debtor" under Florida's UCC for purposes of the four-month relocation
• Hughes v. Amerada Hess Corp.
  965 F. Supp. 2d 402· M.D. Fla.· 1999-06-28
• KIT CAR World, Inc. v. Skolnick
  616 So. 2d 1051· Fla. 5th DCA· 1993-04-02
  Kit Car World and related entities secured a promissory note from a debtor with a security interest in assets and after-acquired property related to replica car kit manufacturing. When the debtor defaulted, the secured creditors executed a writ of replevin seizing inventory. Seve
• J.V. Shields v. Equine Cap. Corp.
  607 So. 2d 468· Fla. 5th DCA· 1992-10-09
  Shields sought declaratory relief to establish his right to a stallion service certificate held by Equine Capital Corporation (ECC), which was necessary to register a thoroughbred foal. The trial court granted summary judgment for ECC based on its claimed security interest in the
• In re Akron-Cleveland Auto Rental, Inc. v. Akron-Cleveland Auto Rental, Inc.
  921 F.2d 659· 6th Cir.· 1990-12-18
  The court held that the lower courts erred in awarding title to the vehicles to Garretts because they failed to establish Garretts' innocence and incorrectly applied equitable principles. The court reversed the judgment and remanded for further proceedings.
• First Bank OF N.D. (N.A.)-Jamestown v. The Pillsbury Co.
  801 F.2d 1036· 8th Cir.· 1986-09-24
  A buyer in the ordinary course of business, even if aware of a security interest, takes free of that interest if the collateral is no longer considered a farm product but has become inventory.
• Nat'l Bus. Sys., Inc. v. Borg-Warner Acceptance Corp.
  792 F.2d 710· 8th Cir.· 1986-06-10
  A secured creditor's perfection of a security interest in collateral remains valid in another state if the collateral was classified as 'equipment' at the time the security interest was created, even if its use changes later. A warranty of title is excluded if the buyer knows the
• Robison v. Gerber Prods. Co.
  765 F.2d 431· 4th Cir.· 1985-06-28
  A purchaser of goods from a merchant who deals in such goods, acting in good faith and without knowledge of third-party ownership rights, is protected by the Uniform Commercial Code's entrustment provisions, even if the seller does not have full title.
• In re Sitkin Smelting & Ref., Inc. v. G.M. Harrison
  648 F.2d 252· 5th Cir.· 1981-06-15
  The court held that the scrap material in the bankrupt refiner's possession should be given to the secured creditor, not the seller, because the transaction was a contract for sale, not a bailment.
• Cent. Nat'l Bank of Miami v. Motif ART Galleries, Inc.
  49 Fla. Supp. 104· Dade Cty. Cir. Ct.· 1979-05-31
  Central National Bank of Miami sought declaratory judgment regarding its ownership rights in art work repossessed from Motif Art Galleries, Inc. The court held that the bank's perfected security interest in inventory, including consigned goods, prevails over the claims of consign
• Haynes v. Gen. Elec. Credit Corp.
  582 F.2d 869· 4th Cir.· 1978-09-19
  The Federal Aviation Act's recording system does not preempt state law priority rules under the Uniform Commercial Code for buyers in the ordinary course of business.
• Weidinger Chevrolet, Inc. v. Universal C.I.T. Credit Corp.
  501 F.2d 459· 8th Cir.· 1974-07-31
  A security interest in inventory is not waived by a clause authorizing commercially reasonable disposition, and a consignment of goods to a dealer who sells goods of that kind is a 'sale or return' subject to the dealer's creditors' claims.