Question
Finnigan Wik is the owner of a commercial truck for which he borrowed the money to purchase the vehicle from Navistar Financial Corporation. While operating
Finnigan Wik is the owner of a commercial truck for which he borrowed the money to purchase the vehicle from Navistar Financial Corporation. While operating the truck and pulling a 53' foot trailer owned by ABC Logistics, Wik overturned the vehicle into a ditch. A local heavy tow operator was contacted to right the truck and trailer, and because the vehicle was not disabled, the two operator took the vehicle, after offloading its freight, back to its truck yard. The daily storage cost was $750, and the cost of the recovery was approximately $10,000.
Wik subsequently failed to pay the promissory note for the vehicle, and Navistar asserted a right to possession. However, the tow operator would not release the vehicle unless the total cost for the recovery and storage was paid - the majority of which was related to the cargo on the trailer rather than the truck itself. Navistar refused to tender more than the apportioned cost of the truck, and the tow operator refused to release the vehicle.
Discuss (a) what Navistar would need to do to perfect its security interest in the truck, (b) who had a security interest in what property, and who would likely have priority under Title 9 of the UCC, and (c) how would the dispute between Navistar and the tow operator likely be resolved?
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