Team Presentations - Law 19 - Spring 2015

Assignment # 6B - Priority of Disputes

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For several years, Hugh Meyer had financial dealings with the First National Bank of Midland. On one occasion, Meyer delivered some stock certificates to the bank as security for a loan. The security agreement defined the collateral to include any “profits, interest and income from the listed property.” Although the securities were in the bank’s possession, the bank never registered the stock in its name, nor did it take other steps to ensure that any stock dividends would be sent to the bank instead of to Meyer. Meyer eventually received a stock dividend of $500,000 and turned over the dividend to his law firm as security for a debt he owed to the firm for legal services. Meyer went bankrupt, and the bank’s successor, the Federal Deposit Insurance Corp., laid claim to the $500,000 as a perfected secured creditor. The law firm claimed that it, and not the bank, had a perfected security interest in the dividend because the dividend was in the law firm’s possession. Which party had a perfected security interest in the $500,000 dividend? [Federal Deposit Insurance Corp. v. W. Hugh Meyer & Associates, Inc., 864 F.2d 371 (5th Cir. 1989)

1. State who won the case - not plaintiff, defendant, but the actual name of the party. 

2. Find the place in your book which answers this question, and quote the page where you found it, the rule of law, and how it applies to these set of facts.

listen to the podcast of Prof J. on this assignment

3. go to the actual case, read it, confirm the Rule of Law in this case, copy and paste the Rule of Law you find from the FDIC v. Meyer case and then paste your work below.