Baldwin v. Hays Asphalt Construction, Inc.

Elliott, J.:

Ellis County Equipment Company (ECE) appeals the trial court’s ruling it did not have a security interest in certain assets of Hays Asphalt Construction, Inc. (HAC).

We reverse and remand.

The facts are essentially undisputed. Ed Baldwin d/b/a Budget Host Inn obtained a default judgment against HAC. The City of Ness City owed HAC money which Baldwin sought to garnish in order to collect his judgment.

ECE intervened in the garnishment, claiming a prior security interest in HAC’s accounts receivable. ECE claims it leased certain equipment to HAC and to secure HAC’s performance under…