final until disposition of timely filed motion for rehearing.
from the Circuit Court for the Fifteenth Judicial Circuit,
Palm Beach County; Meenu Sasser, Judge; L.T. Case No.
B. Zwiebel of Emanuel & Zwiebel, PLLC, Plantation, for
M. Feaman and Nancy Guffey of Peter M. Feaman, P.A., Boynton
Beach, for appellee Marcinkoski Gradall, Inc. and Ray A.
Tennyson and Gregory L. Scott of Nason, Yeager, Gerson, White
& Lioce, P.A., Palm Beach Gardens, for appellee KFIR
Baranes and The Best Floor Care, Inc.
Financial Corp. appeals the trial court's final judgment
in favor of appellees, where the court found that Element did
not have a perfected security interest. The court first
concluded that a guarantor is a debtor pursuant to section
679.3161(1)(b), Florida Statutes (2014), and therefore, that
Element was required to perfect its lien in Florida within
four months of the guarantor moving to this state. Next, the
court concluded that the appellees were buyers in the
ordinary course of business and, pursuant to the Uniform
Commercial Code, section 679.320(1), Florida Statutes (2014),
entitled to title free of the pre-existing security interest.
that the court erred in its interpretation of both statutory
provisions. First, a guarantor is not a debtor within section
679.3161(1)(b). Therefore, Element was not required to
perfect its security interest within four months of the
guarantor moving to Florida; rather, it was required to
perfect its security interest in Florida within one year of
the goods being moved into Florida. See §
679.3161(1)(c), Fla. Stat. (2014). Second, section 679.320(1)
allows a buyer to take goods purchased in the ordinary course
of business free of a security interest "created by
the buyer's seller." § 679.320(1), Fla.
Stat. (2014) (emphasis added). Because the appellees'
sellers did not create the security interests, that section
does not apply to appellees' purchases.
had a perfected security interest and the appellees took the
goods subject to that perfected interest. Therefore, we
reverse the court's judgment and remand for the entry of
judgment in favor of Element.
issue in this appeal are three Bobcat utility vehicles
purchased and financed in California between August 27, 2013
and October 21, 2013. The Bobcats were sold to Inland Empire
Distribution, LLC, a California limited liability company,
and financed by Element Financial Corp. With each
transaction, Inland signed a promissory note and security
agreement, and Omri Elkadar, the managing member of Inland,
signed a personal guaranty.
moved the Bobcats to Florida shortly after the original sales
to Inland. He listed them for sale in a local paper and all
three Bobcats were sold by CM Global, Inc., a Nevada
corporation, to Damage Services, Inc. Damage Services then
sold two of the Bobcats to Marcinkoski Gradall, Inc.
various sales ...