Mead Corp. v. Dixon Paper Co.

OPINION

GREENWOOD, Judge:

The Mead Corporation, dba Zellerbaeh (Mead), appeals the trial court’s grant of summary judgment in favor of Donald William Johnson (Johnson). The ruling gave Johnson priority over Mead with regard to the accounts receivable and inventory of a common debtor, Graphics Reproductions (Graphics). We reverse.

BACKGROUND

This case concerns several loan transactions involving Graphics. On August 24, 1989, West One Bank (West One) extended a $50,000 revolving line of credit to Graphics. The line of credit was secured by a $100,000 letter of credit from Wells Fargo Bank and by…