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Dayka & Hackett, LLC. V. Del Monte Fresh Produce N.A., Inc.

Arizona Court of Appeals
269 P.3d 709 (2012)


Facts

Rolando Castelo de la Rosa and Maria Olivia Aguirre Ramos (debtors) grew grapes in Sonora, Mexico. De la Rosa and Ramos entered into an agreement with Dayka & Hackett (D&H) (creditor) to finance and market their 2007 grape crop. The agreement gave D&H an interest in the sale proceeds of the 2007 crop and of future crops. D&H filed a security agreement in Washington, District of Columbia to perfect its interest. The 2007 crop was not profitable. De la Rosa and Ramos were unable to repay the amount owed to D&H and eventually defaulted. De la Rosa and Ramos later entered into a similar agreement with Del Monte Fresh Produce (creditor) for their 2008 crop. Del Monte was not aware of the preexisting agreement with D&H for the 2007 crop and registered its security interest in Mexico. Del Monte sold the 2008 crop and collected the proceeds. D&H filed a complaint against de la Rosa, Ramos, and Del Monte seeking to enforce its security interest in the 2008 crop for losses owed from the 2007 crop. The trial court granted summary judgment for D&H and Del Monte appealed.

Rule of Law

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Issue

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Holding and Reasoning (Brammer, J.)

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