Carlson v. Giacchetti
Appeals Court of Massachusetts
616 N.E.2d 810 (1993)
John Carlson (plaintiff) leased a dent-repair machine to Richard King under a lease requiring monthly payments, maintenance in good condition, and return of the machine at lease-end, with no purchase option for King. After King defaulted and closed his shop, he sold the machine to Louis Giacchetti (defendant), who had no knowledge of Carlson's interest; Carlson had filed a UCC financing statement, but only two months after Giacchetti's purchase. Carlson sued Giacchetti for conversion when he refused to return the machine, but the trial court found the lease was actually a disguised security agreement under UCC Article 9, meaning Carlson's late filing barred his ownership claim; Carlson appealed.
Whether Article 9 of the Uniform Commercial Code applies to true leases.