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

KILGARLIN, Justice.

The question presented is who has a superior right to funds held by a contractor? Is it his materialman, Interkal, or his creditor, RepublicBank? The trial court concluded that it was the materialman, and granted Interkal a summary judgment for $41,976.30, The court of appeals, with one justice dissenting, affirmed that judgment. 677 S.W.2d 759. We reverse the judgments of the courts below and remand the cause to the trial court.

The facts are relatively simple. J.F. Clark Company, Inc., had contracts to construct gymnasium facilities for various schools. Interkal furnished…