Lewiston Bottled Gas Co. v. Key Bank of Maine

Key Bank (defendant) loaned DiBiase money to buy land for the Grand Beach Inn, taking a mortgage covering after-acquired fixtures recorded under DiBiase's name. After DiBiase incorporated Grand Beach Inn, Inc., the corporation bought ninety heat-and-air units on credit from Lewiston Bottled Gas (LBG) (plaintiff), granting LBG a purchase-money security interest under a contract labeling the units personal property; LBG filed its financing statement under the corporation's name rather than DiBiase's. Key Bank later gave DiBiase a second loan secured by a second mortgage, missing LBG's fixture filing because its title search only covered DiBiase's name. When Key Bank foreclosed in 1989 and then discovered LBG's interest, the parties agreed to defer the dispute until after foreclosure; Key Bank bought the property at the sale, and LBG sued, claiming priority. The trial court granted Key Bank summary judgment, and LBG appealed.