Sherrock v. Commercial Credit Corporation

I do not agree with the conclusion reached by the majority of the Court. This is a case in which action by a third party, Dover Motors, has caused a loss which will fall upon one of two parties not responsible for the action. In a sense, therefore, they may be regarded as innocent parties injured as a result of the illegal action of Dover Motors, not a party to this lawsuit.

The basic purpose of the U.C.C., as L understand it in such situations, is to put the loss on the party whose conduct is most responsible for the loss.

If these parties were a secured creditor and an ordinary buyer of an…