Union Investment, Inc. v. Midland-Guardian Co.

Defendant Midland-Guardian Co. (“Midland”) is the maker of a note for $10,000 payable to Brigid E. Kennedy (“Kennedy”) that she assigned to plaintiff-appellee Union Investment, Inc. (“Union”), as collateral to secure the debt of third parties Ronald and Rita Wagner (“the Wagners”) to Union. Upon execution of the assignment, Union sent a copy of the assignment agreement to Midland, receipt of which was acknowledged. Later, having received no further communication from Union, Midland paid Kennedy the $10,000, without advising Union of the payment. When the Wagners’ debt came in default, Union…