Save-On-Carpets of Arizona, Inc. v. Trend Mills

545 F.2d 1239 20 UCC Rep.Serv. 1081 In the Matter of SAVE-ON-CARPETS OF ARIZONA, INC., an Arizona Corporation, Debtor. Robert L. JARRATT, as Trustee of the Estate of Save-On-Carpets of Arizona, Inc., Trustee-Appellee, v. TREND MILLS, a Division of Champion International, Creditor-Appellant. No. 75-3810. United States Court of Appeals, Ninth Circuit. Nov. 23, 1976. William F. Bennett (argued), of Duecy, Moore, Petsch, Robinson & Bennett, Scottsdale, Ariz., for creditor-appellant. Thomas W. Murphy (argued), Phoenix, Ariz., for appellees. Before BROWNING and KILKENNY, Circuit Judges, and VAN PELT, District Judge. * KILKENNY, Circuit Judge: 1 On this appeal, we are asked to determine whether Trend Mills (appellant) has a valid security interest in various assets of the debtor. Both the bankruptcy court and the district court found that, under the Uniform Commercial Code (UCC) as adopted by the state of Arizona, 1 it did not. We reverse. FACTS 2 On March 6, 1974, the debtor was adjudicated a bankrupt. In 1975, the bankruptcy court held hearings to ascertain the nature and amount of the appellant's interest in the debtor's assets. It rejected the appellant's contention that it had a…