Schultz v. Bank of the West

934 P.2d 421 (1997)

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Schultz v. Bank of the West

Oregon Supreme Court
934 P.2d 421 (1997)

RW

Facts

Robert and June Muir (defendants) put up their motor home as collateral for a loan from Bank of the West (bank) (defendant). The Muirs later consigned the vehicle to be resold by Gateleys’ Fairway Motors (Gateleys), a used-motor-home dealer. Howard and Ann Schultz (plaintiffs) bought the vehicle, unaware of either the bank’s security interest or that the vehicle was sold on consignment. When these facts came to light, the Schultzes sued for a declaration that they owned the vehicle free of the bank’s security interest. The trial court entered judgment for the Schultzes but was reversed on appeal by an intermediate court. The Schultzes appealed to the Oregon Supreme Court.

Rule of Law

Issue

Holding and Reasoning (Gillette, J.)

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