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Ford Motor Credit Co. v. Weaver

Ford Motor Credit Co. v. Weaver

United States Court of Appeals for the Sixth Circuit

October 15, 1981, Argued ; June 10, 1982, Decided ; June 10, 1982, Filed

No. 80-1413

Opinion

 [*454]  KEITH, Circuit Judge. This appeal arose from a Chapter XI petition filed by the defendants-appellees, Robert L. Weaver, John C. Weaver, John C. Weaver & Sons, a partnership and Weaver Farms, also a partnership. The United States District Court for the Western District of Tennessee held that the defendant-appellees' debt to the plaintiff-appellant, Ford Motor Credit Company ("FMCC"), was dischargeable under Section 17a(3) of the Bankruptcy Act of 1898, as amended; that FMCC was an unsecured creditor; and that Robert Weaver was not personally liable.

For the reasons below, the judgment of the district court is affirmed in part and and reversed in part, and this case is remanded [**2]  to the district court for further proceedings consistent with this opinion.

Facts 

Weaver Farms is a partnership whose co-owners are John C. Weaver and Robert L. Weaver. On October 25, 1974, Weaver Farms purchased two Ford tractors and other farm equipment from Cleveland Ford Tractor, Inc. ("CFT"). The terms of this purchase were included in a pre-printed retail installment contract. One provision of that contract indicated that the contract would be assigned to FMCC. FMCC's name appeared in the upper-left corner of the contract. The contract did not, however, include FMCC's address.

Eugene Tarsi, the president of CFT, executed the contract on CFT's behalf. William Maloney, the farm manager of Weaver Farms, obtained the contract from CFT and mailed it to Robert Weaver. Weaver executed the installment contract on behalf of Weaver Farms and mailed it to Maloney. Maloney subsequently delivered the fully executed contract to to CFT. CFT was located in Cleveland, Mississippi. Robert Weaver, however, resided in Memphis, Tennessee.

Weaver Farms' address was improperly listed on the installment contract as Rt. 1, P.O. Box 90, Tutwiler, Mississippi. Tutwiler is in Tallahatchie [**3]  County, Mississippi. The equipment, however, was located on Weaver Farms' property in Sunflower County, Mississippi.

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680 F.2d 451 *; 1982 U.S. App. LEXIS 18539 **; 33 U.C.C. Rep. Serv. (Callaghan) 1778; 6 Collier Bankr. Cas. 2d (MB) 1173

FORD MOTOR CREDIT COMPANY, Plaintiff-Appellant, v. ROBERT L. WEAVER, JOHN C. WEAVER AND SONS and WEAVER FARMS, Defendants-Appellees.

Prior History:  [**1]  ON APPEAL from the United States District Court for the Western District of Tennessee.

Disposition: Affirmed in part, Reversed in part, and Remanded.

CORE TERMS

Farms, notice, scheduled, bankruptcy court, debtor in possession, financing statement, district court, partnership, imputed, bankruptcy proceedings, Bankruptcy Act, installment contract, equipment purchased, place of business, security interest, Tractor, actual knowledge, fiduciary duty, perfected, Box, installment payment, deliberately, discharged, willfully, resident, argues, courts, perfected security interest, official capacity, farm equipment

Bankruptcy Law, Bankruptcy, Discharge & Dischargeability, Reorganizations, Exceptions to Discharge, Unscheduled Debts, Liquidations, Eligible Debts, General Overview, Case Administration, Notice, Effect of Discharge, Protection of Debtors, Debtor Benefits & Duties, Debtor Duties, Commencement of Case, Governments, Local Governments, Finance, Business & Corporate Law, Duties & Liabilities, Knowledge & Notice, Agent Knowledge, Agency Relationships, Authorized Acts of Agents, Types, Banks & Cashiers, Authority to Act, Apparent Authority, Conduct of Parties, Commercial Law (UCC), Collateral, Goods, Contracts Law, Perfection, Methods of Perfection, Secured Transactions (Article 9), Perfection & Priority, Filing, Financing Statements, Secured Transactions, Perfections & Priorities, Management Duties & Liabilities, Causes of Action, General Provisions (Article 1), Definitions & Interpretation, General Provisions, General Provisions, Definitions & General Concepts, Definitions, Parties to Secured Transactions, Reorganizations, Debtors in Possession, Powers & Rights, Duties, Examiners, Officers & Trustees, Duties & Functions, Capacities & Roles, Fiduciaries, Estate, Gift & Trust Law, Trustees, Duties & Powers, Standards of Care, Torts, Duty, Affirmative Duty to Act