State ex rel. Eure v. Lawrence

COZORT, Judge.

The State of North Carolina filed an action against defendant Fred R. Lawrence and various corporations alleging violations of *448State securities laws. A receiver was appointed to preserve and manage the assets of defendants. First Bank, not formally made a party in the State’s lawsuit, set off money in defendant Lawrence’s bank account to cover his outstanding debts to First Bank. The trial court granted the receiver’s motion to direct First Bank to release the funds set off against defendant’s loans. First Bank appeals. We reverse. The facts follow.

The action filed by the State…