Fan-Gil Corp. v. American Hospital Supply Corp.

The trial court ordered the dissolution of Samaritan Hospital Association, a nonprofit corporation, and the sale of all its assets, including certain x-ray equipment, located at Samaritan’s Clinton Valley Hospital. American Hospital Supply Corporation asserted the priority of its interest in the x-ray equipment on the strength of an after-acquired property clause in a November, Í967, security agreement. Fan-Gil Corporation and Doctors Katz and Fannin 1 claimed their purchase money security interest in the equipment deserved priority.

American appeals the trial court’s recognition of Fan-Gil’s…