In 1987, the Muirs bought a motor home. In 1988, the Muirs created and Bank of the West acquired and perfected a security interest in the motor home. In 1992, the Muirs entered into an agreement with Gateleys Fairway Motors by which Gateleys would sell the motor home by consignment. Gateleys sold the motor home to Howard and Ann Schultz. The Schultzes did not know of the consignment arrangement or of the security interest of the bank. Gateleys failed to give the sales money to the Muirs and then filed for bankruptcy.
The Schultzes brought suit seeking a declaration that they owned the motor home free of the bank’s security interest. The trial court granted the Schultzes summary judgment. Who has title to the motor home and why? [Schultz v Bank of the West, C.B.C., 934 P2d 421 (Ore)]