## Facts

- Pickle Logging, Inc., a logging company, refinanced eight pieces of equipment with Deere Credit, Inc. to cure arrearages and granted Deere security interests in the equipment.
- One item owned by the debtor was a John Deere 548G skidder with serial number DW548GX568154.
- Deere’s security agreement and UCC financing statement instead described the collateral as a “648G skidder” with serial number DW648GX568154.
- Pickle filed a Chapter 11 petition on April 18, 2002, and as debtor-in-possession sought determinations of creditors’ secured status and priority in the equipment.
- After hearings, the bankruptcy court entered orders on September 3, 2002 concluding Deere’s lien was unperfected as to the 548G skidder due to the misdescription.
- Deere moved for reconsideration, arguing the error was not seriously misleading and should not defeat perfection.
- Evidence showed 548G and 648G skidders materially differed in cost, appearance, and performance.

## Issues

1. Whether, under Georgia’s UCC Article 9, Deere had a perfected security interest in the debtor’s 548G skidder when both the security agreement and financing statement misidentified the skidder’s model and serial number.
2. Whether, if Deere’s interest was unperfected, the debtor-in-possession could take priority under 11 U.S.C. § 544(a) as a hypothetical lien creditor.
3. Whether Deere established grounds to reconsider the court’s prior orders determining Deere was unperfected as to the 548G skidder.

## Decision

- The court denied Deere’s motion for reconsideration.
- The court reaffirmed that Deere did not have a perfected security interest in the 548G skidder because the collateral description failed to reasonably identify the collateral and was seriously misleading.
- The court held the debtor-in-possession had priority over Deere’s unperfected interest under § 544(a), rendering Deere unsecured as to that skidder.

## Legal Principles

- A security agreement and financing statement must describe collateral in a manner that reasonably identifies the collateral for third-party notice purposes under Georgia UCC Article 9.
- A financing statement is ineffective to perfect a security interest when the collateral description is seriously misleading, particularly where identifying information (such as model and serial number) points to a different item and provides no indication of error.
- Under 11 U.S.C. § 544(a), a debtor-in-possession has the rights of a hypothetical judicial lien creditor as of the petition date and may take priority over an unperfected security interest.
- A motion for reconsideration will be denied where it merely reargues prior issues and does not show error warranting alteration of the earlier determination.

## Conclusion

Because Deere’s filings identified a different skidder by both model and serial number and contained no notice of mistake, the description was seriously misleading, leaving Deere unperfected and subordinate to the debtor-in-possession under § 544(a); the court therefore denied reconsideration and treated Deere as unsecured as to the 548G skidder.


Deere Credit, Inc. v. Pickle Logging, Inc. (In re Pickle Logging, Inc.), 286 B.R. 181 (Bankr. M.D. Ga. 2002)