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Holder (D) borrowed $50,000 from Cooper (P) and then entered into a contract with the City of Moab to perform certain engineering services in the construction of water and sewer improvements. D borrowed $10,000 more from P four months later. As security for the second loan, D assigned P his rights to receive the proceeds of his contract with Moab. A notice of assignment was served on the Mayor of Moab, McDougald, who accepted it and signed an acknowledgment which recited that payment would be made in accordance therewith. Moab, for some unknown reason, did not honor the assignment and made payments directly to D. Cooper (P) sued Holder (D) for $26,000 unpaid on the January loan and sued Moab for the $5,000 remaining on the $10,000 loan. P got the judgment against Moab and Moab appealed.

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