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This section contains the nature of the case and procedural background.

In 1990, P, as a secured creditor, obtained a default judgment against Neil Allen for $1,461.019. Morgan County Feeders attempted to garnish 45 longhorn cows and one bull that were in the possession of Roy Creamer. Creamer contested the garnishment, and P filed a post-judgment motion for issuance of a writ of garnishment and to join third-persons who also claimed an interest in the cattle. The court granted P's motion. The parties then stipulated to the sale of the cattle, and the proceeds were placed in the registry of the court pending a hearing. D claimed a priority in the proceeds based on its perfected security interest arising from a security agreement with Allen, which, in part, contained an after-acquired property clause. D claimed an interest in the proceeds based on an oral agreement with Allen to buy the cattle. The trial court entered judgment in favor of P, in that the cattle were 'equipment' and not 'inventory' under the Uniform Commercial Code and that Allen had no authority to dispose of the longhorn cattle free of P's perfected security interest. D appealed.

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