Yaddehige v. Xpert Technologies, Inc.

2019 WL 1746077 (2019)

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Nature of the Case

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Facts

P alleges that he loaned CLS $3 million in 2013 and that, as collateral CLS granted P a security interest in 'all assets of CLS.' In 2016, D obtained a judgment against CLS for $199,680 in a separate action. CLS satisfied this judgment with money from the deposit account. P sued D arguing that he held a perfected, first-priority security interest in the money used to satisfy the judgment. P alleged that D's retention of the money would amount to unjust enrichment and sought an injunction preventing D from collecting on the judgment with collateral securing P's loan. The trial court granted summary judgment to D in that MCL 440.9332 protects persons who receive transfers of money from a debtor when those funds are subject to a preexisting security interest. P appealed.