Financial Management Services, Inc. v. Familian Corp.

OPINION

TOCI, Judge.

Familian Corporation appeals the trial court’s judgment in favor of Financial Management Services, Inc. (“FMSI”) in FMSI’s action to recover sums collected by Familian from accounts receivable of their common debtor, Pima Plumbing Contractors, Inc. (“Pima”). The appeal raises three issues:(1) did FMSI’s security interest attach to the joint checks, representing accounts receivable proceeds, that Pima’s account debtors negotiated to Pima and Familian as co-payees;(2) was Familian a holder in due course of the joint checks, thus allowing Familian to take the proceeds they…