Florida/Georgia Personal Injury & Workers Compensation

...Establishing a public policy in this instance would be inconsistent with other basic law principles relating to innocent third parties. For example, the bona fide purchaser for value without notice does not lose his interests because of wrongdoing by the seller. See section 672.403(1), Florida Statutes (1977)....

...The district court in the present case distinguishes these cases saying that in each case the insured had an equitable interest in the car because of the money he had paid. This reasoning is not only inaccurate but is also inapplicable to the present case. *143 Fla. Stat. § 672.403 (1969) states that a purchaser of goods acquires all title which his transferor had or had power to transfer....

...The final judgment permitted Carlsen to recover from Marlin; for Marlin to recover from Expo, leaving unanswered the question of whether or not Expo has an enforceable cause of action over and against McEnroe. The controlling provision of the Florida Uniform Commercial Code is Section 672.403, Florida Statutes (1977), which provides: Power to transfer; good faith purchase of goods; "entrusting." (1) A purchaser of goods acquires all title which his transferor had or had power to transfer except that a purchaser of a limited interest acquires rights only to the extent of the interest purchased....

...title (chapter 677). Initially, it is necessary to determine whether there was an entrustment of the automobile. Both under the Code and under prior case law McEnroe could not convey good title or even voidable title if he had stolen the automobile. Section 672.403, Florida Statutes (1977); Avis Rent-A-Car, Inc....

...e to Marlin, who conveyed voidable title to Carlsen, a bona fide purchaser for value without notice. The Uniform Commercial Code does not change the result. The buyer in the ordinary course of business obtains good title by virtue of Subsection 2 of Section 672.403, Florida Statutes (1977)....

...Barnett's security interest in the aircraft is superior to and enforceable against O'Neill's subsequent ownership interest. This would be the case even if O'Neill was a buyer in ordinary course. O'Neill's estoppel argument is without merit because Section 672.403, Florida Statutes (1975), applies only to financing transactions which involve floor planning of inventory....

...The Court stated: "The term `consignment' used in a commercial sense, ordinarily implies an agent, and denotes that property is committed to the consignee for care or sale. " [Id. at p. 202] [Emphasis supplied]. Just as the existence of an undisclosed interest in goods does not prevent passage of title pursuant to Section 672.403(2), Florida Statutes, neither should a hidden interest prevent the enforcement of a security interest in goods delivered "for sale", whether the sale was to be made by the supplier or by the person to whom the goods were consigned....

...ed to retrieve its consigned goods. Although there is no direct evidence as to what has become of the goods, it is clear that as a dealer of goods in the kind involved Bill Amos could have passed good title to the goods pursuant to the provisions of Section 672.403, Florida Statutes....

...(emphasis supplied) Blount urges that DOC's failure to strictly comply with the underscored passage prevents it from taking title to the truck. On the other hand, DOC argues that it received valid title to the fire truck as a good faith purchaser for value under the Uniform Commercial Code (§ 672.403, Fla....

...We find DOC's argument to be correct. It is clear that the provisions of Chapter 319 take precedence over any provision of the UCC which may be inconsistent or in conflict with Chapter 319. § 680.104(2)(h), Fla. Stat. However, it has been consistently held that Section 672.403 is not in direct conflict with the provisions of Chapter 319, in particular Sections 319.21 and 319.22....

...er, that car, when delivered by the manufacturer, would not be deemed a part of the franchised dealer's inventory because it was not on the lot but was special-ordered. Grafting such an interpretation upon Section 679.109(4) would gut the purpose of Section 672.403, which purpose is to protect buyers in due course: In Section 2-403 of the Code [§ 672.403, Fla....

...A careful review of the record on appeal clearly discloses that appellant's transferors, Martinez and Fundora, had power to transfer the assets of the corporation. Consequently the appellant, as a good faith purchaser, obtained good title to the property. Section 672.403, Fla....

...The trial court reserved jurisdiction to enter judgment in Green Tree's action. We find the trial court erred in holding that the Zimermans took title to the motor home free of Green Tree's lien. A purchaser of goods acquires all title which his transferor had or had power to transfer. § 672.403(1), Fla....

...e to a merchant who deals in vehicles of that kind, and the merchant, in turn, sells the motor vehicle to a buyer in the ordinary course of business without satisfying the lien. Milnes v. General Elec. Credit Corp., 377 So.2d 725 (Fla. 3d DCA 1979); § 672.403(2), Fla....

...Stat. (1989) [1] . The above result does not obtain, however, unless the lienholder entrusts possession of the motor vehicle to a merchant or acquiesces in such entrusting by the owner. See Milnes, at 728. In those cases in which the protections of section 672.403(2) have been applied, the owners and/or lienholders have had knowledge of and have acquiesced in the placement of the vehicles with dealers....

...Also, there has been no showing that Green Tree acquiesced in any way in the placement of the motor home with Wildcat. Accordingly, Green Tree cannot be said to have entrusted the motor home to Wildcat, and the Zimermans did not take title free from Green Tree's lien under section 672.403(2). Further, section 672.403(2) may have a limited application with respect to motor vehicles....

...(1989) (notice of lien filed with Department of Highway Safety and notation of lien on certificate of title shall be effective as constructive notice of lien). Because the Zimermans failed to inquire as to the condition of title and are not otherwise entitled to the protections of section 672.403(2), their interest in the motor home is subject to Green Tree's lien....

...We therefore affirm the trial court's finding that the Zimermans are the owners of the motor home, but reverse that portion of the trial court's order which requires *611 Green Tree to deliver to the Zimermans a certificate of title free of any and all liens. RYDER, A.C.J., and SCHOONOVER, J., concur. NOTES [1] Section 672.403(2): "Any entrusting of possession of goods to a merchant who deals in goods of that kind gives him power to transfer all rights of the entruster to a buyer in ordinary course of business."

...s the motor vehicle to a buyer in the ordinary course of business without satisfying the prior lien thereon. Hamilton County Bank v. Tuten, 250 So.2d 17 (Fla. 1st DCA 1971); Correria v. Orlando Bank and Trust Co., 235 So.2d 20 (Fla. 4th DCA 1970); §§ 672.403(1)-(2), Fla....

...Woolverton, 99 So.2d 286 (Fla. 1957). This result obtains regardless of any condition expressed between the lienor and merchant and regardless of whether the procurement of the entrustment of the vehicle or the merchant's sale thereof was larcenous under the criminal law. § 672.403(3), Fla....

...r vehicle"). In arguing that its inquiry to the DMV should place it in a position superior to First Union, Orlando Dodge relies upon Green Tree Acceptance, Inc. v. Zimerman, 611 So.2d 608 (Fla. 2d DCA 1993). Green Tree involved the interpretation of section 672.403(2), Florida Statutes (1989), part of Florida's version of the Uniform Commercial Code....

...the placement of the vehicle with the dealer. The court concluded in Green Tree that the lienor did not entrust possession to the dealer because it had not acquiesced in the vehicle's being placed for resale on the lot. The court further noted that "section 672.403(2) may [in any event] have a limited application with respect to motor vehicles." Id....

...f title with the [DMV] and that the party assumes the existing defects and liens on the title." Id. The court then held, "[b]ecause the Zimermans failed to inquire as to the condition of title and they are not otherwise entitled to the protection of section 672.403(2), their interest in the motor home is subject to Green Tree's lien." Id....

...The Debtor contends that the Plaintiff's reclamation rights are defeated by the prior perfected security interests because the rights of a reclaiming seller are subject to the interests of a good faith purchaser, and a creditor with a perfected security interest constitutes a good faith purchaser under § 672.403 of the Florida Statutes....

...the seller may reclaim the goods upon demand made within 10 days after the receipt, . . . (3) The seller's right to reclaim under subsection (2) is subject to the rights of a buyer in ordinary course or other good faith purchaser under the chapter (s.672.403)....

...emand for reclamation made within ten days of the time that the buyer received the goods. II. A secured creditor as a "good faith purchaser." The right of reclamation, however, is subject to the rights of a good faith purchaser within the meaning of § 672.403 of the Florida Statutes. It appears well-established that a secured creditor is a "purchaser" for purposes of § 672.403 of the Florida Statutes....

...s taking by sale, discount, negotiation, mortgage, pledge, lien, issue or reissue, gift or any other voluntary transaction creating an interest in property." Fla.Stat. § 671.201(32). Consequently, a secured creditor is a "purchaser" for purposes of § 672.403 of the Florida Statutes....

...Right of reclamation as "subject to" perfected security interests. As set forth above, § 672.702(3) of the Florida Statutes provides that a seller's *498 right to reclaim "is subject to the rights of a buyer in ordinary course or other good faith purchaser under the chapter (s.672.403)." (Emphasis supplied)....

...72.507(2) establishes rights and responsibilities between buyer and seller only. "If the rights of third parties are implicated § 2-403(1)(b) and (c) protect good faith purchasers." PEB Commentary No. 1, 3A Uniform Laws Annot. (Supp. 1991), at 286. Section 672.403 provides, in pertinent part: (1) A purchaser of goods acquires all title which his transferor had or had power to transfer except that a purchaser of a limited interest acquires rights only to the extent of the interest purchased....

...A person with voidable title has power to transfer a good title to a good faith purchaser for value. When goods have been delivered under a transaction of purchase the purchaser has such power even though: ... . (c) It was agreed that the transaction was to be a "cash sale,"... . Section 672.403, Fla. Stat. (1989) (emphasis added). In the present case the landlord is a third party who is entitled to rely on section 672.403....

...The tenant had by contract conveyed a property interest in the furnishings to the landlord. [6] The landlord would retain possession of the furnishings upon termination of the lease. This transaction was a sale of those furnishings to the landlord. Thus, the landlord is a third party who is entitled to rely on section 672.403....

...d by the ultimate buyer who purchases for a valid consideration and without notice of the title defect where the rightful owner lost possession through conversion *1247 following entrustment. Carlsen v. Rivera, 382 So.2d 825 (Fla. 4th DCA 1980); see § 672.403, Fla....

...We must do so unless that law contravenes a positive policy of the law of Florida, the forum state. See 16 Am.Jur.2d Conflict of Laws § 6. This issue has been preserved by appellant for our consideration. The appellant contends Louisiana law in this regard is contrary to section 672.403, Florida Statutes (1981), the common law, the Uniform Commercial Code and "the law of the remainder of the states in the United States." In urging the public policy argument for declining to enforce Article 524 of the Civil Code of th...

...Regardless of the "title" or lack of "title" the purchaser from a Louisiana business gets good title. In Florida a purchaser cannot obtain clear title from a thief to defeat the original owner. The most a bona fide purchaser for value in Florida can obtain from a thief is superior title to everyone except the original owner. Section 672.403, Florida Statutes....

...It is of course the general rule that a thief such as Verdi cannot pass good title. Hammond v. Lynes, 21 Fla. 118 (1884); Avis Rent-a-Car Sys., Inc. v. Harrison Motor Co., 151 So.2d 855 (Fla. 2d DCA 1963). Williamson's invocation of the exception to that rule contained in § 672.403(2) is to no avail....

...Moreover, on an a fortiori basis, the vehicle could not have been "entrusted" — a term which itself connotes knowledge and volition — in the admitted absence of any indication that Alamo was aware of Verdi's unlawful business or intent. The very basis of 672.403(2) is to place on the owner the burden of losing his property if he knowingly takes the chance of delivering it to a person in the business of dealing with goods of that kind....

...[1] Reversed and remanded with directions. NOTES [1] The basis of our decision makes it unnecessary to treat Alamo's additional contentions that, given the circumstances of Williamson's acquisition of the car, it was not "a buyer in ordinary course of business" under § 672.403(2), and that it could not secure title through the fraudulent duplicate title certificate under § 319.29(1).

...The financing company, Green Tree, had no relationship with the second dealer and certainly had taken no action to entrust vehicles with the second dealer such that the entrustment doctrine might apply. As stated by the court, the entrustment provision contained in section 672.403 does not apply "unless the lien holder entrusts possession of the motor vehicle to a merchant or acquiesces in such entrusting by the owner." [30] Because the equitable entrustment doctrine did not apply, the Green Tree court found th...

...[15] Joint Ex. 4. [16] Joint Ex. 10, Exhibit A—Final Default Judgment. [17] Id. ¶ 3(a). [18] Fla. Stat. § 319.22(1). [19] 99 So. 2d 286 (Fla.1957). [20] Id. at 288 (quoting Glass v. Cont'l Guar. Corp., 81 Fla. 687, 88 So. 876 (Fla. 1921)). [21] Fla. Stat. § 672.403(2) (2008)....

...Based on the clear language of this statute, title to the Boat passed to Koetter upon the delivery of the Boat to Koetter by the Debtor, even though the Debtor did not deliver the title documents contemporaneously and promised to deliver the title documents later. Section § 672.403 of the Florida Uniform Commercial Code addresses the entrustment of goods and provides, "[a]ny entrusting of possession of goods to a merchant who deals in goods of that kind gives the merchant power to transfer all rights of the entruster to a buyer in ordinary course of business." FLA. STAT. ANN. § 672.403(2) (West 2004)....

...ondition expressed between the parties to the delivery or acquiescence and regardless of whether the procurement of the entrusting or the possessor's disposition of the goods have been such as to be larcenous under the criminal law." FLA. STAT. ANN. § 672.403(3) (West 2004)....

...The communications identified SunTrust as a lienholder. SunTrust certainly had reason to know that the Boat had been consigned, based on all of the facts and circumstances. Acquiescence in a consignment relationship by the lien holder constitutes entrustment pursuant to § 672.403 of the Florida Uniform Commercial Code....

...However, Koetter's failure to ask such questions does not put Koetter in a position of having notice. *286 SunTrust had notice of the consignment of the Boat and acquiesced to the consignment sale of the Boat. SunTrust's acquiescence constitutes an entrusting of the Boat to the Debtor within the meaning of § 672.403(2) of the Florida Uniform Commercial Code....

...r to whom such knowledge or skill may be attributed by his or her employment of an agent or broker or other intermediary who by occupation holds himself or herself out as having such knowledge or skill. FLA. STAT ANN. § 672.104(1) (West 2004). [17] Section 672.403(3) provides that the "rights of other purchasers of goods and of lien creditors are governed by the chapters on secured transactions (chapter 679) and documents of title (chapter 677)." FLA. STAT. ANN. § 672.403(4) (West 2004).

check which had been accepted by Groundworks. Section 672.403(l)(a), Florida Statutes (1993), provides: (1)

...Following a two-day bench trial, the trial court granted replevin and awarded the horse to appellee Tiffany Richtmyer. We reverse, agreeing with Santana Equestrian that this case is controlled by Carlsen v. Rivera, 382 So. 2d 825 (Fla. 4th DCA 1980), and section 672.403, Florida Statutes (2020) – a provision of Florida’s Uniform Commercial Code (UCC). The relevant provisions are as follows: 672.403 Power to transfer; good faith purchase of goods; “entrusting”  (1) A purchaser of goods acquires all title which her or his transferor had or had power to transfer except that a purchaser of a limited interest acquires rights only to the extent of the interest purchased....

...expressed between the parties to the delivery or acquiescence and regardless of whether the procurement of the entrusting or the possessor’s disposition of the goods have been such as to be larcenous under the criminal law. § 672.403, Fla....

...sold to a good faith buyer in the ordinary course of business, then the entruster’s intent, intervening sales, and the merchant’s fraudulent actions are irrelevant. 382 So. 2d at 826-27. “The buyer in the ordinary course of business obtains good title by virtue of [section 672.403(2)].” Id. at 827....

...Seller has an ownership interest in Boat. Debtor sold Boat in the ordinary course of business to Purchaser. Purchaser claims a right to clear title in Boat since he paid value to Debtor. Purchaser's right to clear title conflicts with Seller's ownership interest. Section 672.403(2), Florida Statutes, provides: Any entrusting of possession of goods to a merchant who deals in goods of that kind gives the merchant power to transfer all rights of the entruster to a buyer in ordinary course of business. *272 Section 672.403(2) has been applied in motor vehicle cases where the owners of motor vehicles have entrusted the vehicles with dealers....

...ollowing statutory elements: an entrustment of possession of goods to a merchant; merchant was a dealer in goods of that kind; and merchant sold the goods to a good faith purchaser in the ordinary course of business. The three elements of Fla. Stat. § 672.403(2) are present in the instant case....

...reement and delivering Boat to Debtor. [6] Second, Debtor is a merchant in goods of that kind; Debtor is actively engaged in the business of selling boats on consignment and third, Purchaser was a good faith buyer in the ordinary course of business. Section 672.403(2) promotes the free flow of commerce by transferring superior rights to buyers in the ordinary course. Although both Purchaser and Seller have legitimate claims, one party must suffer due to the actions of Debtor. The result of Fla. Stat. § 672.403(2) is that the loss falls upon the Seller, as he took the risk of delivering the property to a merchant, who deals in goods of that kind. The purpose of placing consigned goods in a merchant's inventory is for the merchant to sell the goods. A buyer in the ordinary course has a right to expect the merchant to have the authority to sell the goods. The statutory remedy of Fla. Stat. § 672.403(2) transfers superior rights to the Purchaser above the rights of the Seller....

...[2] Certificate of Title (Exhibit 7). [3] Correria v. Orlando Bank & Trust Co., 235 So.2d 20 (Fla. 4th DCA 1970); Carlsen v. Rivera, 382 So.2d 825 (Fla.App.1980). [4] Carlsen v. Rivera, 382 So.2d 825 at 827. [5] Correria v. Orlando Bank & Trust Co., 235 So.2d 20 at 24. [6] Fla. Stat. § 672.403(3) provides "[ejntrusting includes any delivery ...."

...cle. SunTrust alleged that Maroone delivered possession of the Camaro to the La-dries through AutoSmart. Maroone disputes that it ever provided the vehicle to AutoSmart. According to SunTrust’s complaint, an entrustment as contemplated by section '672.403(2), Florida Statutes, occurred between Maroone and AutoSmart that imbued AutoSmart with the ability to pass good title to the Ladries....

...as a matter of law. Volusia County v. Aberdeen at Ormond Beach, L.P., 760 So.2d 126, 130 (Fla.2000). The sole basis for SunTrust’s summary judgment motion is that entrustment occurred according to the terms of Florida’s Uniform Commercial Code, § 672.403(2), Fla....

...Stat., which states: “Any entrusting of possession of goods to a merchant who deals in goods of that kind gives the merchant power to transfer all rights of the entruster to a buyer in ordinary course of business.” In this case, SunTrust did not meet its burden of establishing that en-trustment occurred pursuant to- § 672.403 as a matter of law because deposition testimony demonstrates genuine issues of material fact regarding this issue.' Maroone argues that it did not entrust the vehicle to AutoSmart' because it did not deliver the vehicle to AutoSmart and did not acquiesce to its possession or retention of the vehicle. See § 672.403(3), Fla. Stat. The term entrustment, according to section 672.403(3), Florida Statutes, “includes any delivery and any acquiescence in retention of possession regardless of any condition expressed between the parties to the delivery or acquiescence and regardless of whether the procurement of the...

...Finally, Ladrie testified that Dejane-ro, AutoSmart’s agent, never had physical possession of the car. Maroone argues that a genuine issue of fact exists as to whether the Ladries constitute “persons who buy in ordinary course out of inventory,” the persons the pertinent statute ■ is designed to protect. See § 672.403, Fla. Stat. The. Uniform Commercial Code Comment to section 672.403 states, in pertinent part: “The many particular situations in which a buy *622 er in ordinary course of business from a dealer has been protected against reservation of property or other hidden interest are gathered by subsections (2)-(4) into a single principle protecting persons who buy in ordinary course out of inventory.” 5 Furthermore, the purpose of section 672.403(2) “is to place on the owner the burden of losing his property if he knowingly takes the chance of delivering it to a person in the business of dealing with goods of that kind.” Alamo Rent-a-Car, Inc....

replevin action. We reverse upon authority of Section 672.403 (1977) and Carlsen v. Rivera, 382 So.2d 825