Security State Bank of Aitkin v. Morlock

OPINION

PARKER, Judge.

Carl Morlock assigned his uninsured motorist claim to the Security State Bank of Aitkin as security for a loan. After the draft was delivered to the bank, Morlock’s mother called the insurance company and ordered payment stopped on the check. The insurance company stopped payment on the draft and issued a second draft, which Morlock cashed. The trial court concluded that the insurance company was put on constructive notice of the assignment and, in the face of that notice, failed to honor the assignment. Judgment was entered against respondent. We affirm.

ISSUES

1. Is there…