Citizens and Southern Factors, Inc. v. Small Business Administration, an Agency of the United States

Fifth Circuit

Citizens and Southern Factors, Inc. v. Small Business Administration, an Agency of the United States

609 F.2d 239, 27 U.C.C. Rep. Serv. (West) 1412, 1980 U.S. App. LEXIS 21621

CourtCourt of Appeals for the Fifth Circuit

DecidedJanuary 4, 1980

Docket77-1628

StatusPublished

This text of 609 F.2d 239 (Citizens and Southern Factors, Inc. v. Small Business Administration, an Agency of the United States) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Citizens and Southern Factors, Inc. v. Small Business Administration, an Agency of the United States, 609 F.2d 239, 27 U.C.C. Rep. Serv. (West) 1412, 1980 U.S. App. LEXIS 21621 (5th Cir. 1980).

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Opinion

PER CURIAM:

The result in this case rests on the answers to two questions which we certified to the Supreme Court of Alabama. 1 On September 7, 1979, the Supreme Court of Alabama answered the certified questions. Ala., 1979, 375 So.2d 251. The Court ruled: (1) that the conveyance of title to returned goods to an accounts receivable purchaser results simply in the retention of a security interest in favor of that purchaser, and (2) that the Uniform Commercial Code provision governing the priority dispute involved in the case is § 7-9-312(5), not § 7-9-306(5).

The Government concedes — as it must— and then only after a dying gasp that the Alabama Supreme Court’s holding “flies in the face of” § 7-9-306(5) and is clearly wrong — that the Alabama Supreme Court’s rulings demonstrate that Citizens and Southern Factors’ motion for summary judgment should have been granted by the District Court. Accordingly, the judgment of the District Court is reversed and the case is remanded to the District Court with directions that judgment be entered in favor of Citizens and Southern Factors.

REVERSED and REMANDED WITH DIRECTIONS.

1

. The facts of this case and the questions certified are reported at 593 F.2d 729.

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PER CURIAM:

The result in this case rests on the answers to two questions which we certified to the Supreme Court of Alabama. 1 On September 7, 1979, the Supreme Court of Alabama answered the certified questions. Ala., 1979, 375 So.2d 251. The Court ruled: (1) that the conveyance of title to returned goods to an accounts receivable purchaser results simply in the retention of a security interest in favor of that purchaser, and (2) that the Uniform Commercial Code provision governing the priority dispute involved in the case is § 7-9-312(5), not § 7-9-306(5).

The Government concedes — as it must— and then only after a dying gasp that the Alabama Supreme Court’s holding “flies in the face of” § 7-9-306(5) and is clearly wrong — that the Alabama Supreme Court’s rulings demonstrate that Citizens and Southern Factors’ motion for summary judgment should have been granted by the District Court. Accordingly, the judgment of the District Court is reversed and the case is remanded to the District Court with directions that judgment be entered in favor of Citizens and Southern Factors.

REVERSED and REMANDED WITH DIRECTIONS.

1

. The facts of this case and the questions certified are reported at 593 F.2d 729.

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609 F.2d 239, 27 U.C.C. Rep. Serv. (West) 1412, 1980 U.S. App. LEXIS 21621, Counsel Stack Legal Research, https://law.counselstack.com/opinion/citizens-and-southern-factors-inc-v-small-business-administration-an-ca5-1980.

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