Valley Nat. Bank of Ariz. v. Flagstaff Dairy

OPINION

HAIRE, Judge.

On this appeal the appellant bank contends that the trial court erred in entering summary judgment against it on the basis that, as a matter of law, the bank had no valid interest in certain accounts receivable which had been assigned to it by its borrower.

In the early 1970s the appellant bank began extending credit to one of its customers (Larry E. Brown) to finance the production of milk at his dairy. Brown thereafter sold a substantial portion of his milk production on a regular basis to the appellee, Flagstaff Dairy, although there were no contractual arrangements…