Advanta Auto Finance Corp. v. Sugarland Motor Co.

DENNIS, Circuit Judge:

Louisiana law gives a vendor the right to demand dissolution of a sale for nonpayment of the purchase price. In this case, an unpaid vendor sought to dissolve sales of movable property after the original purchaser had resold the movables to a third party in good faith. We hold, under these circumstances, that the vendor’s exercising its right of dissolution could not impair the third party’s rights in the movables. Accordingly, we reverse the district court’s judgment and remand this case for further proceedings.

I. BACKGROUND

Sugarland Motor Company (“Sugarland”) owns and…