444 B.R. 374
Bankr. N.D. Ohio2011Background
- Debtors filed voluntary chapter 13 on May 14, 2010 and Wells Fargo filed Claim No. 4 as secured in the amount of $6,618.31, based on a PMSI in windows from Weather Tite.
- Windows were installed pursuant to a Weather Tite contract signed September 2009; the Charge Slip purported to grant a PMSI and stated dwelling would not become a fixture.
- Windows are consumer goods and were installed as fixtures on the Debtors' residence.
- Wells Fargo asserts its PMSI continued after installation because it was perfected and tied to the purchase.
- Debtors contend the installation converted the windows into ordinary building materials and thus fall within the Ohio PMSI exception for materials incorporated into an improvement on land.
- Court must decide if Wells Fargo’s PMSI continued post-installation or was extinguished by the ordinary building materials exception.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Does Wells Fargo’s PMSI continue after installation of the windows? | Adkins: PMSI lost due to fixtures as ordinary building materials. | Adkins: PMSI continued; Wells Fargo held a perfected security interest. | PMSI did not continue after installation; claim remains unsecured. |
| Are the installed windows ordinary building materials under ORC 1309.334(A)? | Windows are ordinary building materials incorporated into a dwelling. | Windows are ordinary building materials; PMSI persists? (argued as such) | Windows are ordinary building materials; exception applies; PMSI does not continue. |
Key Cases Cited
- In re Ryan, 360 B.R. 50 (Bankr. W.D.N.Y. 2007) (PMSI continues unless ordinary materials exception applies to fixtures)
- Household Finance Corp. v. BancOhio, 62 Ohio App.3d 691 (Ohio Ct. App. 1989) (Fixture filing and perfection rules for PMSI in fixtures)