In June 2003 and November 2005 respectively, appellant The Four County Bank “the Bank” provided financing for the purchase of two different pieces of foresting equipment by Shepherd Brothers Timber Company, LLC “Shepherd”. The Bank perfected its security interests in both pieces of equipment by filing financing statements in Wilkinson County Superior Court. While the Bank’s original financing statements were still effective, Shepherd sold both pieces of equipment to appellee Tidewater Equipment Company “Tidewater”, which later resold them. In October 2008 and March 2011, more than five years after the filing of each of the original financing statements, the Bank attempted to file continuation statements as to the equipment. After Shepherd declared bankruptcy, the Bank sued Tidewater to recover the equipment or its value. On appeal from the trial court’s grant of summary judgment to Tidewater, the Bank argues that Tidewater is liable for the value of the equipment because Tidewater should have known of the Bank’s perfected security interest at the time Tidewater resold the equipment. We disagree and affirm.
Although we view the record in favor of the Bank as the non-movant, the relevant facts are not in dispute. The Bank filed a purchase money financing statement as to Shepherd’s 2003 Tigercat Cutter on June 5, 2003, and a purchase money financing statement as to Shepherd’s 2005 Tigercat Skidder, a piece of construction equipment, on November 18, 2005. On August 30, 2007, Tidewater accepted the Cutter from Shepherd as a trade-in worth $52,500 towards Shepherd’s purchase of a new piece of equipment; Tidewater resold the used Cutter to a third party the same day. On June 26, 2008, Tidewater accepted the Skidder from Shepherd as a trade-in worth at least $47,000 towards Shepherd’s purchase of a second new piece of equipment; Tidewater sold the used Skidder to a third party on May 9, 2009. Tidewater did not perform any lien search before accepting the Tigercats, neither of which were required to have a motor vehicle title. The Bank did not receive any proceeds from either sale.
