National Bank of Alaska v. Erickson
United States Court of Appeals for the Ninth Circuit
912 F.2d 1125 (1990)
In return for a loan of over $9 million, Seaway Express Corporation (Seaway) granted to National Bank of Alaska (NBA) (plaintiff) a security interest in all of Seaway’s accounts receivable and any resulting proceeds from the sale of the accounts. Seaway agreed to seek NBA’s permission before disposing of any collateral in which NBA had an interest. Thereafter, Seaway brought suit against Anchorage Fairbanks Freight Service, Inc. (AFFS), attempting to collect an account receivable of $1 million owed to Seaway by AFFS. As part of the resulting settlement, Seaway sold the account back to AFFS in return for a parcel of real property. Although NBA knew of the proposed settlement, NBA did not object. After the transfer of the land, NBA requested that Seaway record a deed of trust in the real property in NBC’s favor. Seaway refused and subsequently filed for Chapter 11 bankruptcy. Seaway sold the real property and deposited the proceeds into a segregated cash-collateral fund. Thereafter, Warren Erickson (defendant) was appointed as the bankruptcy trustee of Seaway’s estate. In the bankruptcy proceedings, NBA attempted to claim a priority interest in the proceeds of the sale of the real property, based on NBA’s perfected security interest in the proceeds of the sale of the AFFS account. Erickson moved for summary judgment. The bankruptcy court rejected NBA’s claim and granted Erickson’s motion. The Bankruptcy Appellate Panel affirmed. NBA appealed.
Rule of Law
Holding and Reasoning (Beezer, J.)
What to do next…
Unlock this case brief with a free (no-commitment) trial membership of Quimbee.
You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 97,000 law students since 2011. Some law schools—such as Yale, Vanderbilt, Berkeley, and the University of Illinois—even subscribe directly to Quimbee for all their law students. Read our student testimonials.
Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.
Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students. Read more about Quimbee.
Here's why 173,000 law students have relied on our case briefs:
- Written by law professors and practitioners, not other law students. 14,000 briefs, keyed to 188 casebooks. Top-notch customer support.
- The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
- Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
- Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.