Zorba's Inn, Inc. v. Nationwide Mutual Fire Insurance

COZORT, Judge.

The question raised by this appeal is whether a secured party under Article 9 of North Carolina’s Uniform Commercial Code may maintain an action against an insurer to enforce the secured party’s right to insurance proceeds as provided in N.C. Gen. Stat. § 25-9-306. We hold that, under the facts of the case before us, the secured party has no enforceable claim against the insurer. We therefore affirm the judgment below.

On or about 4 March 1986, plaintiff and third-party defendant Eaton entered into an asset purchase agreement whereby Eaton purchased from plaintiff the assets of…