Borg-Warner Acceptance Corp. v. Department of State

Defendant appeals as of right from a judgment of the Court of Claims in favor of plaintiff in the amount of $42,733 for breach of an implied contract. The breach arose out of the failure of defendant to inform plaintiff, after a Uniform Commercial Code filing search, of the existence of a prior secured party’s interest in inventory in which plaintiff took a subsequent security interest. We affirm.

The facts are not in dispute. Plaintiff is a finance company engaged in, among other activities, the financing of inventory purchased by appliance and furniture dealers. In this capacity, plain tiff…