Court Opinion

ID: 9776758
Source: CourtListenerOpinion
Date Created: 2023-08-29 19:43:59.892875+00
Date Added: 2024-06-11T07:32:42.298672
License: Public Domain

STEPHENSON, Justice
(dissenting).
I respectfully dissent. I would permit the Deer Park Bank to recover the $9,467.-40 retainages.
At the time Deer Park Bank made loans to Contractor, Art. 260-1, § 6, V.A.C.S., was in effect. That article permitted banks and other lending institutions to make interim construction loans and secure a protected assignment. In effect, that article provided that the lender, upon complying with the notice requirement, should have superior right to the funds assigned.
Deer Park Bank did everything required of it in order to secure the protection afforded by Art. 260-1. At the time of default, Deer Park Bank had advanced Contractor $61,845.41, which we must assume went into this job. Also, at that time, City had on hand $9,467.40 which we must assume Contractor had earned for the work he had performed to that point. In my opinion, justice demands that the Deer Park Bank should recover that money under the protected assignment it held. Transamerica Insurance Co. v. Texas Warrant Co., supra (405 S.W.2d 66) and University State Bank v. Gifford-Hill Con. Corp., supra (431 S.W.2d 561).
I am well aware that apparently no appellate court in this state has attempted to reconcile the conflict between Art. 260-1 and Art. 5160, § E, as none of the cases cited in the majority opinion attempt to do so. Possibly, with this dissent, the Supreme Court of this state will settle this matter.