Spurlin v. Sloan
| Decision Date | 31 May 1963 |
| Citation | 368 S.W.2d 314 |
| Parties | 1 UCC Rep.Serv. 402 Jack SPURLIN, Appellant, v. Odes SLOAN and Spencer Sloan, d/b/a Sloan Construction Company and Arvie Burchett, Appellees. |
| Court | Supreme Court of Kentucky |
C. Kilmer Combs, Ashland, for appellant.
Clark Pratt, Hindman, for appellees.
EARL T. OSBORNE, Special Commissioner.
This is an action by Jack Spurlin against Arvie Burchett in which Spurlin obtained judgment in the Floyd Circuit Court and attached money due Burchett for work performed upon a project in Lawrence County by the Department of Highways. The question is the priority of an attachment lien over a previous assignment of money due the assignor.
Prior to the execution of the attachment, Burchett had made an assignment to Spencer Sloan and Odes Sloan, d. b. a. Sloan Construction Company, of the funds due him by the Department. The assignment was for the purpose of settling partnership accounts between Burchett and the Sloans.
On November 17, 1959, Burchett and the Sloans had entered into a contract with the Commonwealth for the construction of a road in Lawrence County with the understanding that each party was to perform a specified portion of the work and to receive his share of the contract money to be apportioned in accordance with the proportion of work performed. On September 20, 1960, the Lawrence County contract had been completed and there was due to the partnership of Burchett and Sloan the sum of $6,613.40. Of this amount there was due Spencer and Odes Sloan the sum of $2,890.76 and to Burchett the sum of $3,722.64. On September 20, 1960, Burchett, in order to settle his accounts with the Sloans for the sum of $3,743.06, which was owing them for their work on the Lawrence County job, assigned to the Sloans his right, title and interest in the funds due under the Lawrence County contract. This assignment provided that the money was to be paid to the Bank of Hindman to pay off a loan to the Sloans in the amount of $5,047.27. The assignment directed the Commonwealth to pay the full amount due to the Bank of Hindman, and the bank was authorized to receive the funds and first apply them to the payment of the indebtedness of the Sloans and then distribute the remainder as directed in the assignment. There was not a sufficient amount due to Burchett to pay the full amount of his indebtedness to the Sloans.
A copy of the assignment was sent to the Department of Highways on October 17, 1960. The Department advised the parties that it could not be a party to the assignment but that it would comply by mailing any amount due under the contract to the Bank of Hindman. Thereafter, the Department marked its books and set up the payments to be made in this manner. However, before the check was mailed to the Bank, the plaintiff caused an attachment to be issued, which was served on April 12, 1961, upon the Department. As garnishee, the Department then paid the funds into the circuit court to await an adjudication of the rights of the parties in this action.
It is the contention of the plaintiff, Jack Spurlin, that he has a prior right to that portion of the funds which belonged to Burchett under the highway contract as a result of his attachment herein. It is the contention of the defendants herein, Odes and Spencer Sloan, that the assignment was complete and final and the attachment created no lien.
Prior to the enactment of Chapter 355 of the Kentucky Revised Statutes, which is commonly referred to as the Uniform Commercial Code, there was no doubt under the laws of this Commonwealth but what the attachment would have been ineffective against the assignee of these funds. In the case of R. C. Poage Milling Co. v. Economy Fuel Co.,...
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Sun Bank, N.A. v. Parkland Design and Development Corp., 83-787
...necessary for resolution in this case is whether or not the assignment was perfected under Article 9 without filing. See Spurlin v. Sloan, 368 S.W.2d 314 (Ky.1963); Lyon v. Ty-Wood Corporation, 212 Pa.Super. 69, 239 A.2d 819 (1968). Section 679.302(1)(c), Florida Statutes (1983) requires th......
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Ketcham v. US
...212 Pa.Super. 69, 239 A.2d 819 (1968) (assignments were absolute, in payment of pre-existing debt, and not for security); Spurlin v. Sloan, 368 S.W.2d 314 (Ky.1963) (assignment by one partner to others, in payment of debt, of right to distribution, was absolute assignment, and not security ......
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Valley Bank of Nevada v. City of Henderson
...financing transactions. (Emphasis added.) Thus, Valley Bank's reliance on N.R.S. 104.9104(6) and the cases of Spurlin v. Sloan, 368 S.W.2d 314 (Ky.Ct.App.1963) and Lyon v. Ty-Wood Corporation, 212 Pa.Super. 69, 239 A.2d 819 (1968) is misplaced.8 See George W. Ultch Lumber Company v. Hall Pl......
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National Sur. Corp. v. State Nat. Bank of Frankfort
...If the assignment were for money due and owing, it was not necessary that this instrument be recorded at all. See Spurlin v. Sloan Const. Co., Ky., 368 S.W.2d 314. The judgment is affirmed upon direct appeal. There is also a cross-appeal in this case by the bank from so much of the judgment......
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Section 1.11 Effect of Judgment Lien Under the Uniform Commercial Code
...of a levy, the UCC will not affect the rights of either the judgment creditor or the judgment debtor. For example, in Spurlin v. Sloan, 368 S.W.2d 314 (Ky. Ct. App. 1963), the court held that the assignment of a right to receive payment under a completed contract was neither a "security int......