APPELLATE COURT OF ILLINOIS, FIFTH DISTRICT
546 N.E.2d 1168, 190 Ill. App. 3d 773, 138 Ill. Dec. 113 1989.IL.1779
Appeal from the Circuit Court of Jefferson County; the Hon. Bruce D. Irish, Judge, presiding.
JUSTICE GOLDENHERSH delivered the opinion of the court. HARRISON and RARICK, JJ., concur.
DECISION OF THE COURT DELIVERED BY THE HONORABLE JUDGE GOLDENHERSH
Plaintiff, Scot Lad Foods, Inc., filed this action for declaratory judgment to have the circuit court determine the respective rights of the plaintiff and defendant, First Bank and Trust Co., in the proceeds from a sale of collateral in which both parties had a perfected security interest. The circuit court found for plaintiff. Defendant appeals and raises the following issues: whether the trial court abused its discretion when it found that plaintiff had a perfected security interest with priority over defendant's perfected security interest and whether the trial court abused its discretion in deciding in favor of plaintiff on the issue of disputed expenses. This court affirms.
The record reveals the following facts. Eugene Bolerjack operated a retail grocery store known as Bolerjack's Market. On December 15, 1975, Bolerjack entered into a security agreement with plaintiff. Plaintiff filed a financing statement with the Secretary of State on December 22, 1975. On December 2, 1980, and December 4, 1985, plaintiff filed continuation statements. Plaintiff also filed the financing statement and continuation statements with the Jefferson County clerk. In the security agreement, Scot Lad Foods, Inc., and Evansville Food Distributors are listed as secured parties. Federal Wholesale was formerly known as Federal Wholesale Corporation and had been a wholly owned subsidiary of plaintiff, but on August 29, 1974, Federal Wholesale was merged into plaintiff. Evansville Frozen was formerly known as Evansville Food Distributors, Inc., and was a wholly owned subsidiary of plaintiff. On June 30, 1979, Evansville Food Distributors, Inc., was merged into plaintiff. Although these companies had merged, they continued to operate under names other than Scot Lad Foods, Inc.; however, Scot Lad Foods, Inc., billed Bolerjack's Market. On March 7, 1985, Bolerjack entered into a security agreement with defendant. Both security agreements covered the store's inventory.
When Bolerjack defaulted, the parties, by agreement, sold Bolerjack's remaining inventory. The proceeds of the sale totaled $58,000. On the date of the hearing, April 4, 1988, Bolerjack owed plaintiff $55,886.57 and defendant $243,572.44.
On July 7, 1988, the court entered its judgment for plaintiff. The court found that plaintiff's security interest was superior to defendant's. Defendant appeals.
The first issue before this court is whether a security interest is valid where the secured party listed in the agreement is the parent corporation.
Defendant argues that a party whose name does not appear on a financing statement cannot be held to have a perfected security interest. Defendant specifically points out that section 9-402(1) of the Uniform Commercial Code (Ill. Rev. Stat. 1987, ch. 26, par. 9-402(1)) requires that the financing statement set forth the secured party's name and address. In this case defendant argues that Scot Lad Foods, Inc., is not a secured party because Bolerjack's Market did not transact business with it but rather with Federal Wholesale and Evansville Frozen, and thus, the security agreement did not comply with section 9-402(1).
As a general rule, a court of review will not disturb a trial court's finding and substitute its own opinion unless the holding of the trial court is manifestly against the weight of the evidence. (Green v. City of Chicago (1978), 73 Ill. 2d 100, 110, 382 N.E.2d 1205, 1210.) Furthermore:
"The granting or denying of a request for declaratory relief is a matter for the sound discretion of the trial court; to disturb its ruling on review there must have been an abuse of its discretion." (Mendelsohn v. CNA Insurance Co. ...