Appeals Court of Massachusetts
616 N.E.2d 810 (1993)
John Carlson (plaintiff) leased a chassis liner, which was a machine used to remove dents from cars, to Richard King, a car-repair shop owner. The lease required King to deliver monthly payments over 60 months, to maintain the equipment in good condition throughout the duration of the lease, and to return the machine to Carlson upon the end of the lease term. After delivering two payments, King defaulted, and his shop subsequently closed. King sold the machine to Louis Giacchetti (defendant). Carlson did not file public-financing notices until two months after the sale to Giacchetti, and Giacchetti had no knowledge of Carlson’s interest in the equipment. Carlson demanded the return of the chassis liner, but Giacchetti refused to comply. Carlson brought suit against Giacchetti, claiming that Giacchetti’s actions amounted to a conversion. The trial judge ruled in Giacchetti’s favor, concluding that the lease agreement between Carlson and King was a security agreement to which Article 9 of the Uniform Commercial Code (UCC) applied, and was not a true lease. The trial judge held that Carlson’s late filing precluded his claim to ownership. Carlson appealed.
Rule of Law
Holding and Reasoning (Gillerman, J.)
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