Justia Commercial Law Opinion SummariesArticles Posted in US Court of Appeals for the Fifth Circuit
FinServ Casualty Corp. v. Symetra Life Insurance Co.
Symetra appealed a jury verdict in favor of FinServ and A.M.Y. in an action involving structured settlement payments Symetra owed to two individuals. Both payments were subject to security interests held by FinServ and A.M.Y. in all of Rapid and RSL-3B's then-owned and after-acquired property. The Fifth Circuit held that filing a financing statement does not provide actual notice. Without an inquiry duty, the court held that Symetra's failure to find the financing statement was not "actual notice." Because the facts presented did not support the conclusion of actual notice, the court held that the district court should have granted judgment in favor of Symetra as a matter of law, since Symetra did not receive notice that the payments were assigned to FinServ and A.M.Y. until 2012, after its offset rights accrued. Therefore, Symetra's defenses were not subordinated to the security interests held by FinServ and A.M.Y. Accordingly, the court reversed and remanded, rendering judgment as a matter of law to Symetra. View "FinServ Casualty Corp. v. Symetra Life Insurance Co." on Justia Law
Fishback Nursery, Inc. v. PNC Bank
This case involved a lien contest among three creditors of a bankrupt commercial farm. The Fifth Circuit affirmed the district court's grant of summary judgment for PNC and found no error in the district court's ruling that the Nurseries' liens were not senior to PNC's lien on the bankrupt company's assets. The court held that the district court correctly rejected the Nurseries' argument that any choice of law provision in the Fishback-BFN contracts should control the law applicable to the Nurseries' lien dispute with PNC; the Nurseries failed to show that the district court misapplied either the Texas or federal choice-of-law rules; and Fishback failed to comply, substantially or otherwise, with Oregon’s notice requirement via a UCC financing statement. View "Fishback Nursery, Inc. v. PNC Bank" on Justia Law