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Financial Federal Credit, Inc. v. Crane Consultants, LLC

Citations: 21 F. Supp. 3d 264; 83 U.C.C. Rep. Serv. 2d (West) 633; 2014 U.S. Dist. LEXIS 65125; 2014 WL 1883811Docket: No. 10-CV-6491L

Court: District Court, W.D. New York; May 12, 2014; Federal District Court

Narrative Opinion Summary

This case involves a legal dispute between Financial Federal Credit Inc. (FFC) and Crane Consultants, LLC (CraneCon), along with Ramar Crane Services, LLC and its affiliates. The litigation concerns the sale and financing of two cranes. FFC, a financing firm, sought partial summary judgment for declaratory relief against Ramar and default judgment against CraneCon. Ramar countered with motions for summary judgment to dismiss FFC's claims. The court granted FFC's default judgment against CraneCon, resulting in damages totaling over $1 million. However, the court denied FFC's motion for partial summary judgment against Ramar, instead granting Ramar's summary judgment motions. The court concluded that Ramar purchased the Liebherr crane free of FFC's security interest and held a superior interest in the Tadano crane. The court found that Ramar was a buyer in the ordinary course of business, and the transactions were customary within the industry. Additionally, the court denied FFC's motion to strike Ramar's cross-motion for summary judgment, as the issues raised were substantially similar to those in Ramar's timely response. The court served as the factfinder due to the absence of a jury demand, ultimately determining the transactions aligned with standard industry practices.

Legal Issues Addressed

Contract Interpretation: Separate Transactions

Application: The court found that the sales of the Liebherr and Tadano cranes were separate transactions, not contingent upon each other, despite being documented together.

Reasoning: The Liebherr crane was transferred to Ramar without the Tadano crane being transferred to CraneCon, indicating the sales should be treated as separate transactions.

Default Judgment for Failure to Appear

Application: The court granted a default judgment against Crane Consultants, LLC due to its lack of legal representation and failure to respond to discovery requests.

Reasoning: The court granted FFC's motion for default judgment against CraneCon, ordering FFC to provide proof of damages, which totaled $1,134,938.25, including attorney's fees.

Summary Judgment: Timeliness of Cross-Motion

Application: The court denied FFC's motion to strike Ramar's cross-motion for summary judgment as untimely, allowing it to proceed due to a lack of prejudice to FFC.

Reasoning: FFC's request to deny Ramar's motion based on timeliness was denied.

Uniform Commercial Code Section 9-320: Buyer in the Ordinary Course of Business

Application: Ramar was deemed a buyer in the ordinary course, acquiring the Liebherr crane free from any security interest held by FFC, as the transaction was consistent with industry standards.

Reasoning: Ramar is deemed a buyer in the ordinary course (BIOC) of business, thus acquiring the crane free of FFC’s security interest.

Uniform Commercial Code Section 9-324: Priority of Purchase Money Security Interest

Application: Ramar's interest in the Tadano crane was found superior to FFC's due to Ramar's purchase money security interest, which took precedence over FFC's claim.

Reasoning: Ramar's interests in the Tadano crane prevail over those of FFC.