Federal Deposit Insurance Corp. v. Registry Hotel Corp.

658 F. Supp. 311 (N.D. Tex. 1986)

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Nature of the Case

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Facts

Frownfelter Construction (D) agreed to perform work for Registry Hotel (D1). D assigned its rights to Indian Springs State Bank with D1's consent. The FDIC (P) became the receiver of the Indian Springs Bank. D1 terminated the contract with D because D had not obtained the necessary bonds. D1 then contracted with Pavestone, D's former subcontractor, to complete the work. Pavestone then contracted with Pave Lock Systems, who was owned by the owner of D. D1 paid Pavestone for the work. P sued; the assignment of rights continued to the new contracts. D1 moved for summary judgment. P contends that D1 failed to pay the Bank in accordance with the assignment. It, therefore, seeks to recover from D1 the outstanding amount of D's debt.