Searching over 5,500,000 cases.


searching
Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.

Palmatier v. Wells Fargo Financial National Bank

June 14, 2010

JOHN S. PALMATIER & HEATHER A. PALMATIER, DEBTORS-APPELLANTS,
v.
WELLS FARGO FINANCIAL NATIONAL BANK, CREDITOR-APPELLEE.



The opinion of the court was delivered by: David N. Hurd United States District Judge

MEMORANDUM DECISION and ORDER

I. INTRODUCTION

Debtors-Appellants John S. Palmatier and Heather A. Palmatier ("debtors") appeal from an order of Hon. Robert E. Littlefield, Jr., Chief United States Bankruptcy Court Judge for the Northern District of New York. Over debtors' opposition, Chief Judge Littlefield ordered, inter alia, that creditor-appellee Wells Fargo National Bank ("creditor") has a validly perfected purchase money security interest in the debtors' home furniture set forth within the proof of claim submitted to the bankruptcy court. (See Order, Dkt. No. 1-1, 2.) The parties filed their briefs, and the appeal was taken on submission without oral argument.

II. BACKGROUND

On June 13, 2007, debtors purchased furniture from local retailer Raymour & Flanigan for the sum of $2,969.89. Included in the total amount paid was $249.95 for a "Platinum Protection Plan." Debtors later filed a Chapter 13 bankruptcy petition on December 7, 2007, under which creditor was listed as having an unsecured claim to the purchase money for the furniture. On December 28, 2007, creditor filed a secured proof of claim for the remaining amount of money owed for the furniture, $2,852.89. (See Ex. B to Creditor's Opp'n to Debtors' Objection to Claim, Dkt. No. 3-4.)

In support of its proof of claim, creditor submitted three documents purportedly provided to the debtors at the time of purchase: (1) a sales order ticket signed by Mr. Palmatier; (2) a signature page also bearing Mr. Palmatier's signature; and (3) an unsigned credit card agreement. (See Ex. A to Creditor's Opp'n to Debtors' Objection to Claim, Dkt. No. 3-3.) By signing the signature page, Mr. Palmatier "acknowledge[d] receipt of a copy of the Wells Fargo Financial privacy Policy which was provided to [him] in a separate document." Id. at 3. Although the validity of Mr. Palmatier's signatures are not in dispute, the parties disagree as to whether the signature page offered in support of creditor's proof of claim corresponds to the credit card agreement or, alternatively, to a separate, unknown document.

The sales order ticket provides, in pertinent part: "SECURITY INTEREST. You agree to give the applicable party (WFFNB or Raymour & Flanigan Furniture) a purchase money security interest in goods purchased in this transaction to the extent provided by law." Id. at 2. The signature page signed by Mr. Palmatier reads, in pertinent part:

Signature

Your signature means that you have read and agree to the terms of our Credit Card Account Agreement and our Authorization Agreement.

You give us and we will retain a purchase money security interest in goods purchased under this agreement.

Forwarding Applications

If we do not approve your application for credit, you agree to allow us to forward your application to Raymour & Flanigan Furniture for consideration of credit approval. Raymour & Flanigan Furniture will independently investigate, verify and consider your application.

Id. at 3. Last, the credit card agreement bears the title, "Raymour & Flanigan Credit Card Account Agreement General Terms." Id. at 4. It reads, in pertinent part:

To the extent permitted by applicable law, you hereby grant to us and we are retaining a purchase money security interest under the Uniform Commercial Code in the merchandise purchased on your account until such merchandise is paid for in full. You agree to assist us in executing any document necessary to perfect our security interest. If you do not make a minimum payment due on your account ...


Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.