Meyers v. Arnold

Plaintiffs appeal from a judgment for defendant on the pleadings in this action to recover the balance allegedly due on a promissory note and to foreclose an alleged security interest in personal property. We reverse.

This dispute arose after plaintiffs (the secured parties) sold a service station business to defendants (debtors). The pleadings allege the following facts: Defendants executed a promissory note in favor of the plaintiffs in the amount of $13,296.65. They also executed a security agreement in favor of the plaintiffs. The agreement listed as collateral several items of personal…