McCoy v. American Fidelity Bank & Trust Co.

LEIBSON, Justice.

Japee McCoy, Jerry McCoy and John Stanley were partners in a business they called the JMSCO Corporation, located in Phelps, Kentucky. They entered into an “Equipment Lease Agreement” with American Fidelity Bank and Trust Co. to lease two pieces of heavy equipment. The JMSCO Corporation, and each of the three movants, individually were designated as “Lessees,” “individually and jointly” liable.

Throughout this lawsuit all parties have treated this Lease Agreement as creating a security interest covered by Article 9 of the Uniform Commercial Code, “Secured Transactions,” and…