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

Shaw (D) was the general contractor. Lancaster was a sub working for him. Homer (P) loaned Lancaster money for half of the profits that Lancaster would earn by his work with D. P obtained a written security agreement, and notice was sent to D and accepted by him in writing. Lancaster's trouble continued to the point where he had to give up work entirely. D convinced him to stay on the job by rescinding the old contract and making new arrangements. P wanted payment and had to sue. The case was referred to an auditor who found that the old agreement had been rescinded and a new one put in its place and that the rights of P did not extend to the new agreement. Judgment was entered for D. P appealed.

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