Hutzenbiler v. RJC Investment, Inc.
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The Supreme Court reversed the order of the district court granting summary judgment on Plaintiff's claim to an accounting and recovery of surplus proceeds on the resale of her mobile home after she returned it to RJC Investment, Inc. holding that the district court erred in holding that Article 9 of the Uniform Commercial Code (UCC) was inapplicable in this case.
Plaintiff entered into an installment sale contract and security agreement to purchase a mobile home. The contract was assigned to RJC. Plaintiff later allowed RJC to take possession of the mobile home and signed a full release of contract relinquishing all rights to the mobile home. After RJC resold the mobile home RJC failed to provide an accounting of the sale and did not refund any surplus to Plaintiff. Plaintiff sued RJC. The district court granted summary judgment for RJC. The Supreme Court reversed, holding (1) the release between Plaintiff and RJC did not terminate application of the UCC's requirement for an accounting and surplus after RJC sold the collateral; (2) the district court erred in granting RJC summary judgment on the ground that RJC satisfied the elements of the acceptance of collateral in full satisfaction pursuant to Mont. Code Ann. 30-9A-620; and (3) RJC was not entitled to summary judgment on other grounds.
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