Matteson v. Harper

Plaintiff sued defendant for conversion of collateral in which plaintiff had a perfected security interest. The trial court granted summary judgment for plaintiff in the amount of $17,000, representing the fair market value of the equipment on the date of the conversion. The Court of Appeals reversed, holding that the entrustment provision of Article 2 of the Uniform Commercial Code, ORS 72.4030(3), 2 operates to cut off a perfected security interest under Article 9 of the Uniform Commercial Code, ORS 79.1010 to 79.5070. We allowed review to consider whether ORS 72.4030(3) cuts off a security…