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Contracts Keyed to Marshall
Seattle-First National Bank v. Oregon Pacific Industries, Inc.
Citation:500 P.2d 1033 (1972)
On December 12, 1968, the defendant purchased plywood from Centralia. Centralia assigned the invoice evidencing the purchase to the bank on December 13, and the bank notified the defendant of the assignment. The defendant refused payment and the bank brought this action. The defendant argues that it has a setoff against the bank’s claim. Prior to the bank’s assignment the defendant had placed two plywood orders, not included in the assigned invoice, with Centralia. Delivery was never made by Centralia and defendant contends it can set off the damages it suffered thereby against the bank’s claim. Centralia Plywood was insolvent when it assigned the invoice to the bank on December 12 and the bank knew of the insolvency at that time. Both Centralia and the bank are nonresidents. The defendant contends that because of these circumstances it is entitled to the setoff.
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