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Yaddehige v. Xpert Technologies
Michigan Court of Appeals
2019 WL 1746077 (2019)
Dr. Sena Yaddehige (plaintiff) loaned money to Creative Lighting Solutions (Creative) and received, as collateral, a security interest in all assets of Creative. The loaned money was placed in a deposit account. Creative consistently paid a monthly payment to Yaddehige against the loan and always had sufficient collateral to satisfy the loan. Xpert Technologies, Inc. (Xpert) (defendant) obtained a judgment against Creative in a lawsuit, which Creative paid out of the deposit account’s funds. Yaddehige filed suit in Michigan state court against Xpert, claiming that under the Uniform Commercial Code (UCC), he had a perfected, first-priority security interest in the funds that Creative had used to satisfy Xpert’s judgment. Yaddehige sought an injunction to keep Xpert from collecting from Creative and asserted that Xpert would be unjustly enriched if allowed to keep the funds. There was no evidence of collusion between Creative and Xpert to violate Yaddehige’s security interest. The trial court issued a summary disposition for Xpert, and Yaddehige appealed to the Michigan appellate court.
Rule of Law
Holding and Reasoning (Per curiam)
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