TEXTRON FINANCIAL CORP. V. UNIQUE MARINE, INC.
2008 WL 4716965 (2008)
NATURE OF THE CASE: Textron (P) is seeking an ex parte Temporary Restraining Order,
Emergency Break Orders and Emergency Pre-Judgment Writs of Replevin.
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.
ISSUE:
RULE OF LAW:
HOLDING AND DECISION:
LEGAL ANALYSIS:
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