Appeal from the Order of the Court of Common Pleas, Lawrence County, Civil Division, at No. 290 of 1983, C.A.
Allen L. Palmer, New Castle, for appellant.
Thomas A. Young, Johnstown, for appellee.
Brosky, Wieand and Del Sole, JJ.
[ 374 Pa. Super. Page 149]
This is an appeal from an order granting appellee's Motion for summary judgment and denying appellant's Motion for summary judgment.
Appellant questions the propriety of the entry of summary judgment in favor of appellee instead of it in terms of (1) whether the law in effect at the time required the filing of amended financing statements when the debtor changes name or corporate structure or transfers the subject collateral to a newly created entity; and (2) whether the amended financing statements are sufficient to preserve a secured party's lien against a subsequent purchaser of the subject collateral when the amended financing statements are unsigned by the debtor and misindexed by the Prothonotary.
We reverse the order granting appellee's Motion for summary judgment and denying that of appellant's and vacate and remand for entry of summary judgment in favor of appellant and against appellee.
The undisputed facts are as follows. In 1977, appellant loaned the sum of $38,500.00 to one Roger C. Eddy, doing
[ 374 Pa. Super. Page 150]
business as Marshall Manufacturing (hereinafter "Eddy"), located at One Shenango Street, New Castle, Pennsylvania. To secure the loan, Eddy executed a security agreement in the nature of a chattel mortgage granting appellant a security interest in all machinery, equipment, fixtures and parts owned or thereafter acquired by Eddy, including any proceeds. Appellant filed copies of the requisite financing statement with the Prothonotary of the Court of Common Pleas of Lawrence County and with the Secretary of the Commonwealth to perfect its interest in the said collateral.
In 1978, appellant again transacted a loan with Eddy in the amount of $130,000.00. Eddy conveyed to appellant a security interest in all accounts receivable, equipment, proceeds and stock then owned and thereafter acquired by Eddy as collateral for the said loan. Once again, appellant filed the requisite copies of a financing statement with the Prothonotary and the Commonwealth Secretary, as aforesaid, to perfect its interest in the stated collateral.
In 1980, Eddy participated as an incorporator in the incorporation of Shenango Enterprises, Inc. (hereinafter "Shenango") located at One Shenango Street, New Castle, Pennsylvania, which is the same address given for Eddy on the subject security agreements and financing statements.
It was not until January 1981 that appellant discovered that Shenango was in possession of collateral which was the subject of the aforesaid security interests of appellant. As a result, appellant demanded that Shenango enter into assumption agreements for each of the two loans transacted between appellant and Eddy. In these agreements, Shenango, inter alia, acknowledged and assumed Eddy's obligations to appellant and, in consideration for appellant's consent to the transfer of the subject collateral from Eddy to Shenango, Shenango agreed to execute and file new financing statements. Shenango failed to execute and file the financing statements. Subsequently, in February and April 1981, appellant filed an amendment to the financing statements previously lodged with the Prothonotary and the
[ 374 Pa. Super. Page 151]
Commonwealth Secretary evidencing a change in the name of the debtor ...