Barr v. White Oak State Bank

McKAY, Justice.

This is an appeal from a judgment rendered upon a directed verdict in a suit for conversion and wrongful disposition of collateral in violation of Chapter 9 of the Texas Business and Commerce Code. The question in this case involves the priority between secured creditors who hold a security interest in the same collateral.

The record shows that on December 3, 1975, L.E. Fowler, d/b/a White Oak Lawn & Garden Center, executed a promissory note payable to the White Oak State Bank (Bank) in the principal sum of $25,000.00. The note specified that it was secured by a security…