Kennedy v. Healthtone Staffing
The secured transactions provisions of the California Uniform Commercial Code and the Nevada Revised Statutes Annotated (NRS) provide a comprehensive scheme for the regulation of security interests in personal property and fixtures. (U. Com. Code com. 1, 23B pt. 2 Wests Ann. Com. Code (2009 supp.) foll. 9101, p. 2; Official com. 1, NRS (2008) foll. 104.9101.) Plaintiff Stephen J. Kennedy (Kennedy) lent three Nevada limited liability companies, American Staffing, LLC, American Indo Staffing, LLC, and American Asian Staffing, LLC (collectively, American Staffing), $150,000 during 2003. In return, American Staffing assigned to Kennedy its right to payments from defendant HealthOne Staffing (HealthOne). The trial court determined that the assignment was covered by the secured transactions provisions of the California Uniform Commercial Code, and Kennedy was required to file a financing statement to perfect his interest in the assignment. Because Kennedy had failed to do so, the court entered a judgment in favor of HealthOne at the conclusion of Kennedys case in chief. Court conclude the court erred, reverse the judgment, and remand for further proceedings.



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