Dallas Court of Appeals Dissolves Garnishment and Reinstates Security Interest of Levinger PC Client
April 29, 2015 in Case Summaries
Joined by appellate lawyer Carl Cecere and trial lawyer Steve Goldston, Jeff Levinger represented Inwood National Bank in its appeal of an adverse judgment in a complex, high-dollar garnishment proceeding. Although Inwood held a perfected security interest in a large investment account owned by one of its borrowers, the trial court concluded that Inwood’s security interest was subordinate to Wells Fargo’s later judgment lien against the same borrower. Addressing an issue of first impression in Texas concerning the meaning of UCC § 9.323(b), the Dallas Court of Appeals agreed with Inwood’s argument that it had taken no actions to compromise its prior, perfected security interest. Accordingly, the court dissolved Wells Fargo’s writ of garnishment and restored Inwood’s security interest in the investment account. Inwood National Bank v. Wells Fargo Bank, 463 S.W.3d 228 (Tex. App. ‑‑ Dallas 2015, no pet.).
Courts: Texas Intermediate Appellate Courts
Subject Matter: Business Litigation