Deere Credit, Inc. v. Pickle Logging, Inc.

286 B.R. 181 (2002)

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Deere Credit, Inc. v. Pickle Logging, Inc.

United States Bankruptcy Court for the Middle District of Georgia
286 B.R. 181 (2002)

Facts

Tree-logging company Pickle Logging, Inc. (Pickle) (plaintiff) owned various types of logging equipment, including a 548G model skidder. Attempting to satisfy its debt to Deere Credit, Inc. (Deere) (defendant), Pickle refinanced eight pieces of its equipment with Deere. In both the financing statement and security agreement, one of the machines was improperly misidentified as a “648G skidder, serial number DW648GX568154” instead of a 548G skidder with a slightly different serial number, DW548GX568154. Pickle later filed for Chapter 11 bankruptcy. At the bankruptcy hearing, Pickle contended that Deere did not have a perfected security interest in the 548G skidder, because the agreement incorrectly referenced a 648G skidder. Expert testimony further established that 548G skidders and 648G skidders were very different machines in terms of cost, appearance, and performance. The bankruptcy court concluded that, because of the mislabeling in the relevant documents, Deere did not hold a perfected security interest in the 548G skidder. Deere filed a motion for reconsideration.

Rule of Law

Issue

Holding and Reasoning (Laney, J.)

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