ARATEX SERVICES, INC. v. Blue Horse, Inc.

OPINION

ANDERSON, Chief Judge.

Appellant claims the trial court erred by finding that it failed to disclose a debt pursuant to a garnishment summons and is therefore liable to respondent for the amount of the indebtedness. We agree and reverse.

FACTS

Appellant Western State Bank and Insurance Agency (the bank) was a major creditor of The Blue Horse, Incorporated (Blue Horse). The bank held a mortgage on real estate owned by Blue Horse and first and second security interests in other Blue Horse assets. On July 12, 1991, the bank started foreclosure proceedings on the mortgage and, a week later,…