“Rock-Paper-Scissors” is a popular game for breaking ties and settling arguments. It works quite well with two players. However, add a third player and the outcome becomes less than clear. Rock beats scissors, scissors beats paper, and paper beats rock. But who wins if all three players choose separate options and no do-overs are allowed?
Just like Rock-Paper-Scissors, the fixtures priority rules work well for resolving disputes between two claimants. In the recent case of Sturtz Machinery, Inc. v. Dove’s Industries, Inc., 2014 U.S. Dist. LEXIS 49235 (N.D. Ohio April 8, 2014), a court applied the UCC priority rules to a dispute between two parties in which each claimed a security interest in fixtures. The case, however, left open the question of how the fixture priority rules work when multiple claimants have perfected by different means. As discussed in detail below, the result in such circumstances can be circular priority.
Read the rest of the article: http://csctransactionwatch.com/rock-paper-scissors-fixtures/?utm_source=UCC+News&utm_campaign=9f47fcb715-RSS_EMAIL_CAMPAIGN_UCC+NEWS&utm_medium=email&utm_term=0_f3e640d787-9f47fcb715-19211673