First Security Bank Idaho v. Absco

This matter involves competing claims of two creditors to the inventory of a retail business. We are asked to determine whether the district court erred in granting summary judgment to the First Security Bank of Idaho, N.A. The bank was a holder of a perfected security interest in the inventory, as against Absco Warehouse, a supplier to whom the debtor returned the inventory for credit on an open account. By cross-appeal the bank contends the court erred in failing to award attorney fees to the bank. The bank also requests attorney fees on appeal. We affirm the summary judgment, including the district court's refusal to award attorney fees, and we similarly refuse to award attorney fees on appeal. The debtor, Bruce Elliot, doing business as Action Automotive Paint and Supply, purchased automotive paint and supplies from Absco Warehouse, on open account, between March 5, 1979, and October 31, 1980. Credits to the account resulted either from cash payments, or from the return to Absco of merchandise which had been purchased on credit. On September 19, 1980, Elliot apparently returned to Absco all the inventory he had on hand which had been purchased from Absco, and received a credit in the amount of $12,469.93.