Dallas Bank & Trust Co. v. Frigiking, Inc.

STEPHENS, Justice.

Dallas Bank & Trust Co. appeals from a judgment in a suit brought by Frigiking Inc., to recover funds paid to Dallas Bank by Ivins Industries, Inc., a mutual customer. We affirm in part and reverse and render in part.

In 1978 Ivins gave both Frigiking and First National Bank of Euless a security interest in its inventory and the proceeds of that inventory. Frigiking’s security interest was given and perfected prior to the interest given to First National. First National assigned its interest to Dallas Bank. Both Frigiking and Dallas Bank then extended credit to Ivins based on…