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

Economy (P) sued Delta (D) for monies due under a loan agreement. Ertel (D1) and Dugan were the secretary and president of D. Ertel (D1) filed a third-party complaint against RCA (D3). D3 was an account debtor of D, and when D assigned its debts to P, D3 was notified of that assignment but D3 continued to pay D. D3 claimed that even though it paid the wrong party it had a right of set-off against P. On appeal the court of appeals held that P should be subrogated to Economy's rights as assignee of the accounts receivable from D3 and that Economy would take free of certain set-off rights claimed by D3 against the account creditor D.

The legal issues presented in this case will be displayed here.

The court's holding and decision will be displayed here.

Legal analysis from Dean's Law Dictionary will be displayed here.