General Electric Capital Commercial Automotive Finance, Inc. v. Spartan Motors, Ltd.

GECC (plaintiff) held a perfected security interest in Spartan Motors' (defendant) general inventory, while GMAC (defendant) separately financed specific vehicle purchases for Spartan, filing its own security agreement and notifying GECC. When Spartan bought two Mercedes-Benzes and GMAC reimbursed Spartan days later, consistent with standard industry practice, GECC argued its earlier-perfected general interest should have priority over GMAC's because GMAC's money came after the purchase; the trial court agreed with GECC, and GMAC appealed.