Northern Commercial Co. v. Cobb

OPINION

MATTHEWS, Chief Justice.

I. INTRODUCTION

Appellant Northern Commercial Company d/b/a N.C. Machinery Company (“NC”) seeks possession of an item of collateral which its debtor sold to appellee Mallard Leasing Company (“Mallard”). The trial court granted summary judgment to Mallard on the theory that NC had impliedly authorized the sale to Mallard, thus destroying NC’s security interest in the collateral. On appeal, Mallard asserts that it is also protected as a buyer in due course, and that NC’s private sale of other collateral satisfied the underlying debt at issue.

II. FACTS AND…