Madison Capital Company, LLC v. S & S Salvage, LLC
United States District Court for the Western District of Kentucky
765 F.Supp.2d 923 (2011)
- Written by Josh Lee, JD
Facts
Timothy Smith owned three companies that were in the business of mining. Smith borrowed funds from Community Trust Bank (CTB) in February of 2005 to fund these companies through a $1,500,000 term loan and a $350,000 revolving loan. These loans were secured by the equipment of the mining companies, which included 85 Hemscheidt Shields (Shields). The Shields were metal roof supports that weighed about 15 tons each. In December 2005, Smith sold the Shields as scrap metal. Smith contends that he sold the Shields to S & S Salvage, LLC (S & S) (defendant), who then sold the Shields to River Metals Recycling, LLC (River Metals) (defendant). S & S claims that it was acting as an agent for Smith and only transported the Shields and used S & S’s account for the sale to River Metals on Smith’s behalf. River Metals purchased the Shields without any knowledge of Smith or his mining companies. Madison Capital Company, LLC (Madison) (plaintiff) also loaned Smith and his company funds and eventually purchased CTB’s security interest from February 2005 through an assignment. Madison sued S & S and River Metals for conversion. Each of the parties moved for summary judgment.
Rule of Law
Issue
Holding and Reasoning (McKinley, J.)
What to do next…
Here's why 811,000 law students have relied on our case briefs:
- Written by law professors and practitioners, not other law students. 46,300 briefs, keyed to 988 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.