First National Bank v. Heintz (In re Heintz)
First National Bank v. Heintz (In re Heintz)
Opinion of the Court
DECISION AND ORDER DENYING DEFENDANTS’ MOTION FOR SUMMARY JUDGMENT
This matter is before the court upon “Defendants’ Motion for Summary Judgment as to Plaintiff’s Cause of Action Alleging Willful and Malicious Injury to Crops.”
In its amended complaint, plaintiff alleges that “debtros/defendants unlawfully and without authorization disposed of ... crops which were subject to a security interest held by plaintiff by secretly and fraudulently transferring the assets to unknown third parties.” (Doc. 17) Defendants have moved for summary judgment on the ground that a security agreement signed by them and an accompanying fi
The requirement of description of collateral (see RC § 1309.14 [UCC 9-203] and Comment thereto) is evidentiary. The test of sufficiency of a description laid down by this section is that the description do the job assigned to it— that it make possible the identification of the thing described. Under this rule courts should refuse to follow the holdings, often found in the older chattel mortgage cases, that descriptions are insufficient unless they are of the most exact and detailed nature, the so:called “serial number” test....
Official Comment to U.C.C. § 9-110.
With respect to the role of Ohio Rev. Code § 1309.14 [U.C.C. § 9-203] it has been observed that “[t]he primary function of 9-203 is that of a statute of frauds; it is designed mainly to minimize disputes over whether there was an agreement and over what collateral it could have covered.” White and Summers, Handbook of the Law Under the Uniform Commercial Code, p. 910 (2d ed. 1980).
For defendants to prevail on their motion for summary judgment, it must appear that there is no genuine issue as to any material fact and that the defendants are entitled to a judgment as a matter of law. Fed.R. Civ.P. 56(c). Defendants are not entitled to judgment as a matter of law unless it can be said that under Ohio law a listing of a street address on a security agreement is per se an insufficient description of real estate for purposes of Ohio Rev. Code § 1309.14 [U.C.C. § 9-293] or that the undisputed facts in the case before the court establish that the description was inadequate. It is clear from the Official Comment to U.C.C. § 9-110 [Ohio Rev. Code § 1309.08] that something less than a precise legal description of real estate is required to be contained in a security agreement. Because of the flexibility contained in the “reasonable identification” standard of Ohio Rev. Code § 1309.08 and based on the lack of direction from Ohio case law, this court cannot find that defendants’ de
For the foregoing reasons defendants are not entitled to judgment as a matter of law under Fed.R.Civ.P. 56 and defendants’ motion for summary judgment is DENIED.
. Defendants also cite Ohio Rev. Code § 1309.39 [U.C.C. § 9-402] which requires any financing statement covering growing crops to contain a description of the pertinent real estate. That statute, however, involves perfection of a security interest against third parties. Perfection is irrelevant in the instant matter; the issue is whether the security agreement is enforceable between the original parties to the security agreement and is governed by Ohio Rev. Code § 1309.14.
Reference
- Full Case Name
- In re William G. HEINTZ, Lois A. Heintz, Debtors. The FIRST NATIONAL BANK, SIDNEY, OHIO v. William G. HEINTZ, Lois A. Heintz
- Cited By
- 1 case
- Status
- Published