Citibank N.A. v. Prime Motor Inns Ltd. Partnership

780 N.E.2d 503 (2002)

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Nature of the Case

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Facts

In 1993, Citibank secured a $5.3 million judgment against Field. In 1997 Selig obtained a judgment against Field in the amount of $19.5 million. Prime Motor Inns L.P. (PMI) offered to pay Field $500,000 to abandon his proxy fight for ownership of PMI's hotels, subject to the approval of the PMI partners. Field executed an instrument entitled 'Collateral Assignment' which assigned to Joseph Selig 'all sums due and to become due' under the PMI settlement 'as security for the payment' of his judgment. Citibank levied upon the $500,000 shortly before Selig filed a UCC-1 statement in New Jersey. Citibank then initiated this turnover proceeding. Both the lower courts determined that the Field assignment to Selig was a security interest and Citi (P) has superiority. This appeal resulted.