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Clapp v. Orix Credit Alliance, Inc.

Court of Appeals of Oregon
84 P.3d 833 (2004)


Clapp (plaintiff), an independent truck driver, decided to purchase a highway tractor. Laser Express, Inc. (Laser) (defendant), an interstate common carrier Clapp provided truck-driving services for, agreed to purchase the tractor for Clapp. Orix Credit Alliance, Inc.(Orix) (defendant), a commercial finance company, entered into a contract with Laser and prohibited Laser from assigning the contract without prior written consent. Laser nevertheless transferred its interest in the contract to Clapp without the requisite consent. The next year, the tractor was accidentally destroyed. The insurance payment to Orix exceeded the balance due on the contract by $9,950.39. Clapp claimed the net proceeds in excess of her balance belong to her and demanded payment from Orix. Orix, however, issued a check for the proceeds to Laser. Clapp brought suit against both Laser and Orix for conversion. The trial court granted Orix’s cross-motion for summary judgment, holding that the assignment is a limited one and does not entitle Clapp to the net insurance proceeds. Clapp appealed.

Rule of Law


Holding and Reasoning (Brewer, J.)

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