Textron Financial Corp. v. Unique Marine, Inc.

2008 WL 4716965 (2008)

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Nature of the Case

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Facts

P has a long-standing contractual agreement with Unique Marine (D) wherein P provides financing for boats and boating equipment that are sold by D. Todd Ebelin, President of D, signed a personal guaranty for D's debts to P. D must pay down the invoice price for items that remain unsold in its dealership by paying P a monthly fee that is established in the Statement of Financial Transaction that accompanies each individual item of inventory that P finances. If D sells an item of inventory financed by P, D is obligated to pay the remaining unpaid balance of the invoice price. D must hold the proceeds of the sale in trust for P and immediately remit to P the amount necessary to cover the invoice price of that item. P inspects inventory on-site on a monthly basis. P discovered that D sold six items of inventory financed by P, which D had neither reported nor paid for as required by the parties' Credit Agreement. P alleges that D breached the parties' Credit Agreement. In the event of D's default, P is entitled to accelerate the payment of all sums due to it. P demanded $3,540,163.65, representing the unpaid principal balance due plus interest and fees. P asserts that it is entitled to collect the Collateral set forth in the Credit Agreement. P fears that D will wrongfully dissipate its assets over the course of these proceedings.