First National Bank of Louisville, Appellee/cross v. Master Auto Service Corporation, Appellant/cross

ERVIN, Circuit Judge:

This action arose when First National Bank of Louisville (the Bank), a secured lender and assignee of the accounts receivable of International Rubber Industries, Inc. (IRI), brought an action against Master Auto Service Corp. (Master Auto) to recover $235,655.04 owed by Master Auto to IRI for the purchase of a large quantity of all-steel radial tires. Master Auto sought a $265,927.24 set-off, 1 an amount which Master Auto contends it was entitled to have credited to its account for honoring customer claims under IRI’s express tire warranty. Master Auto contended that…