Citicorp Leasing, Inc. v. Whitaker

HOWARD, Judge.

This is an appeal from the Johnson Circuit Court wherein the court held that the appellant could not recover certain sums under a conditional sales contract which had been assigned to it. The reason assigned for this decision was that the appellant was not a holder in due course, pursuant to KRS 355.9-206(1), and therefore the partnership herein could raise the defense of a failure of title and of consideration.

The partnership was a Florida based operation which desired to get into the coal business in Johnson County, Kentucky. In order to do this, they had to acquire…