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In Re Estate of Silver

2003 Mich. App. LEXIS 1389, 50 U.C.C. Rep. Serv. 2d 1196 (2003)

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In Re Estate of Silver

Michigan Court of Appeals
2003 Mich. App. LEXIS 1389, 50 U.C.C. Rep. Serv. 2d 1196 (2003)

KS

Facts

Kathleen Wilson entered into a security agreement with Mark Conti that gave her a security interest in items belonging to Conti, including his equipment. In 1996 Wilson filed a financing statement to perfect her interest in the assets, including the equipment. From 1998 to 1999, Conti executed security agreements with the Joseph M. Silver Trust (Silver Trust) giving the trust a security interest in 11 paintings. Silver Trust took possession of the paintings to perfect its interest. A probate court found that seven of the paintings were equipment, and therefore, Wilson’s financing statement gave her priority over those paintings. However, the probate court ruled that four of the paintings were consumer goods, owned by Conti primarily for his personal use. Because Wilson’s financing statement did not cover consumer goods, her interest in those four paintings was not perfected, and the probate court awarded the paintings to Silver Trust. Wilson and Conti appealed, arguing that the probate court erred in determining that the four paintings were consumer goods as opposed to equipment. Conti testified that he purchased the paintings to use in his business, where they hung in model homes and in company offices. Conti testified that he did not use the paintings in his home or in his office at work.

Rule of Law

Issue

Holding and Reasoning (Per curiam)

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