Republicbank Dallas, N.A. v. Interkal, Inc.

I respectfully dissent. The majority interprets section 4 of article 5472e TEX.REV.CIV.STAT.ANN. (Vernon Supp.1983)1 as merely limiting a bank’s liability *763when it receives funds from a contractor with unpaid subcontractors. I would hold that section 4 also prevents the creation of a trust for materialmen when a bank is competing for those same funds.

Two lines of authority are in apparent conflict on this issue. One line of cases emphasizes the principle that statutes protecting materialmen should be afforded a broad and liberal construction and holds that materialmen may assert 5472e trust…