Feresi v. The Livery, LLC

Opinion

BURKE, J. *

The California Uniform Commercial Code 1 provides that “a financing statement must be filed to perfect all security interests ... .” (§ 9310, subd. (a).) It further provides, “A perfected security interest . . . has priority over a conflicting unperfected security interest . . . .” (§ 9322, subd. (a)(2).) This order of priority is not immutable and in some circumstances must yield to principles of equity. Here two parties hold security interests in the same entity. One party perfected his security interest by breaching a fiduciary duty owed to the party whose security…