Borg-Warner Acceptance Corp. v. Department of State

This case of first impression presents the question whether a prospective creditor, who requests the Secretary of State to perform a filing search pursuant to MCL 440.9407; MSA 19.9407 (UCC 9-407) for effective financing statements naming a particular debtor, may recover damages from the state for breach of contract when the certificate issued to the plaintiff following the search fails to identify a creditor with a prior security interest in the debtor’s property and the plaintiff sustains a loss as a result. We find that neither a state agent’s performance or promise to perform specific…