Ranier v. Gilford

HAYES, Chief Judge:

The only issue with substance raised by appellant is whether Kentucky law, specifically the Uniform Commercial Code — KRS Chapter 355 — recognizes a secured creditor’s right for wrongful conversion of collateral against the transferee of the original debtor. In this case of first impression in Kentucky, we hold that KRS 355.9-306(2) permits such an action and we therefore affirm the judgment of the trial court.

Appellee, Samuel A. Gilford Company, loaned money to the C & S Construction Company on June 28, 1978. As security for the loan, Gilford obtained a security agreement…