In re Weir-Penn, Inc.

344 B.R. 791 (2006)

From our private database of 46,100+ case briefs, written and edited by humans—never with AI.

In re Weir-Penn, Inc.

United States Bankruptcy Court for the Northern District of West Virginia
344 B.R. 791 (2006)

Facts

Weir-Penn, Inc. (WPI) (debtor) operated a convenience store in West Virginia. On October 31, 1997, WPI borrowed money from United Bank, Inc. (United Bank) (creditor), which allegedly took a security interest in WPI’s assets, including equipment, inventory, and accounts. United Bank filed a financing statement the following week. WPI refinanced the loan in 1999. On September 9, 2002, United Bank filed a continuation statement. On September 10, 2002, WPI refinanced the loan a second time and executed a promissory note containing a security clause, which referenced previously executed security instruments or agreements, as well as the financing statement. On January 12, 2006, WPI defaulted on the note. On February 10, 2006, WPI filed its Chapter 7 bankruptcy petition in the United States Bankruptcy Court for the Northern District of West Virginia. United Bank filed a motion for relief from the automatic stay of the Bankruptcy Code to repossess convenience store property and enforce its security rights. However, United Bank could not produce a copy of the security agreement purportedly executed by WPI. United Bank’s market president signed an affidavit stating that the security agreement could not be located and that it had likely been destroyed in a flood. Thomas H. Fluharty, WPI’s Chapter 7 trustee (Trustee), opposed the motion on the basis that United Bank was not a secured creditor because it could not produce an authenticated security agreement. WPI joined in the Trustee’s objection. The Trustee sold the assets subject to United Bank’s alleged security interest and held those funds pending the determination of United Bank’s lien rights, if any, in the proceeds. United Bank argued that the absence of a separate written security agreement signed by WPI does not negate its security interest considering the financing statement signed by WPI listing the collateral and the associated documentary evidence.

Rule of Law

Issue

Holding and Reasoning (Flatley, J.)

What to do next…

  1. Unlock this case brief with a free (no-commitment) trial membership of Quimbee.

    You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 745,000 law students since 2011. Some law schools—such as Yale, Berkeley, and Northwestern—even subscribe directly to Quimbee for all their law students.

    Unlock this case briefRead our student testimonials
  2. Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.

    Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students.

    Learn about our approachRead more about Quimbee

Here's why 745,000 law students have relied on our case briefs:

  • Written by law professors and practitioners, not other law students. 46,100 briefs, keyed to 987 casebooks. Top-notch customer support.
  • The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
  • Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
  • Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.

Access this case brief for FREE

With a 7-day free trial membership
Here's why 745,000 law students have relied on our case briefs:
  • Reliable - written by law professors and practitioners, not other law students
  • The right length and amount of information - includes the facts, issue, rule of law, holding and reasoning, and any concurrences and dissents
  • Access in your class - works on your mobile and tablet
  • 46,100 briefs - keyed to 987 casebooks
  • Uniform format for every case brief
  • Written in plain English - not in legalese and not just repeating the court's language
  • Massive library of related video lessons - and practice questions
  • Top-notch customer support

Access this case brief for FREE

With a 7-day free trial membership