Engelsma v. Superior Products Manufacturing Co.

The issue raised on this appeal is whether a landlord’s so-called floating lien or a contract vendor’s conditional sales contract has priority with respect to the property of a bankrupt tenant. The trial court held that the vendor’s purchase money security interest prevails and we affirm.

The case was presented on a stipulation of facts without taking testimony. On August 19, 1965, plaintiff Lloyd Engelsma’s predecessor in interest as landlord executed a lease with Carl Hillesland and Irene Hillesland as tenants of a restaurant known as Tony’s Night Club, located in McCarron Hills Shopping…