This section contains the nature of the case and procedural background.

Mrs. Potter owed money to a sporting goods firm which sold her account to Continental Purchasing (P). Mrs. Potter assigned her right to receive wages from her employer, Van Raalte (D), to P. P notified D of the assignment and D began deducting about $1.50 per week from Mrs. Potter's wages and paid that amount to P. D ceased making deductions from her wages when it learned of Mrs. Potter's dire financial condition. P formally notified D of the wage assignment for the second time; D did not pay the wages to P. P sued D to recover the wages paid to Mrs. Potter. The lower courts ruled in D's favor. P appealed.

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