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INVESTMENT SERVICE CO. v. NORTH PACIFIC LUMBER CO.

492 P.2d 470 (1972)

INVESTMENT SERVICE CO., an Oregon Corporation, Respondent, v. NORTH PACIFIC LUMBER CO., an Oregon Corporation, Appellant.

Supreme Court of Oregon.

Decided January 12, 1972.

Attorney(s) appearing for the Case

Robert L. Allen, Portland, argued the cause for appellant. With him on the briefs were Morrison & Bailey and James L. Sutherland, Portland.

William M. McAllister, Portland, argued the cause for respondent. On the brief were Cleveland C. Cory, Phillip D. Chadsey, Erik G. Sten, and Davies, Biggs, Strayer, Stoel & Boley, Portland.

Before O'CONNELL, C.J., and DENECKE, HOLMAN, HOWELL and SCHWAB, JJ.

DENECKE, Justice.

The plaintiff, as assignee of a bank, is attempting to recover the invoice price for lumber sold to defendant. The bank contends it is entitled to recover because Browne, a lumber producer, assigned the proceeds of the invoice to it and transferred a security interest in the lumber to it. The defendant, a lumber wholesaler, contends it does not owe the entire invoice for the reason that it has a setoff because of defective lumber which Browne previously...

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