In re Duckworth

Federal 7th Circuit Court
Civil Court
Bankruptcy
Citation
Case Number: 
Nos. 14-1561 & 14-1650 Cons.
Decision Date: 
November 21, 2014
Federal District: 
C.D. Ill.
Holding: 
Reversed and remanded
In action by lender seeking to enforce its security interest in property held by debtor, Dist. Ct. erred in enforcing said security interest where security agreement contained wrong date of promissory note signed by debtor, and where Dist. Ct. considered parole evidence to obtain correct date of said promissory note. Although lender could use parole evidence to correct instant mistake when seeking to enforce security interest directly with debtor, lender could not use parole evidence against bankruptcy trustee. As such, instant security agreement did not give lender security interest in specified collateral that could be enforced against trustee.