ITT Diversified Credit Corp. v. Highlands Insurance

ITT Diversified Credit Corporation (hereafter respondent or ITT) provided funding for the purchase of 64 motorcycles by Transara Motor Sports, Inc. (hereafter Transara) in accordance with the terms of an “Agreement for Wholesale Financing” (hereafter the agreement) executed by the parties in February of 1978. The total amount of money advanced to Transam by respondent pursuant to the agreement was $71,425.30.

In July of 1978, respondent filed a complaint against Transam and others alleging that 13 of the financed motorcycles had been “sold or otherwise disposed of by TRANSAM from its retail outlet” without payment to ITT in the amount of $ 16,887.70 as required by the agreement. In addition, eight of the sixty-four motorcycles, having a value of $11,507.80, had been reported by Transam as lost or stolen, also without the required repayment to respondent. According to the complaint, Transam further failed to pay $41,079.20 owing to respondent for the remaining 43 motorcycles pursuant to the agreement, although a lawful “demand therefor” had been made. By the complaint, respondent sought return of the motorcycles or a money judgment representing the value of the withheld…