Makino, U.S.A., Inc. v. Metlife Capital Credit Corp.

On January 20, 1981, Makino, U.S.A., Inc., a distributor for its Japanese parent, delivered a “machining center” — it made parts for other machines — to Richard C. Moran, who operated a machine shop in Everett. The purchase price was $187,223. Moran, the buyer, paid for the Makino machine through financing arrangements with Litton Industries Credit Corporation (Litton). 2 Litton disbursed the actual dollars not to Moran or Makino, but to Kensington Associates, Inc. (Kensington), a dealer for Makino. Kensington never remitted to Makino, thus setting the stage for the dispute between Makino and…