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FIRST NAT. BANK v. HURRICANE ELKHORN COAL CORP.

No. 83-5838.

763 F.2d 188 (1985)

FIRST NATIONAL BANK OF LOUISVILLE, Plaintiff-Appellant, v. HURRICANE ELKHORN COAL CORPORATION II; Logan & Kanawha Coal Company, Inc., Defendants-Appellees.

United States Court of Appeals, Sixth Circuit.

Decided May 21, 1985.

Attorney(s) appearing for the Case

David T. Stosberg, argued, Morgan & Pittinger, Louisville, Ky., for plaintiff-appellant.

John P. Reisz; Octavia B. Wilkins, argued, James G. Apple, Stites, McElwain & Fowler, Louisville, Ky.; Charles F. Hartsock, Hartsock, Harris & Schneider, Cincinnati, Ohio, for defendants-appellees.

Before MERRITT and KRUPANSKY, Circuit Judges, and ROSENN, Senior Circuit Judge.

MERRITT, Circuit Judge.

This bankruptcy case arises from the setoff by an agent of approximately $84,000 in order to recoup mistaken overpayments paid to the creditor of its principal, a Chapter 11 debtor. The setoff occurred in the context of a somewhat complex financing arrangement involving the principal, its agent, and the creditor bank.

The principal, coal producer Hurricane Elkhorn Coal Co., in order to secure continuing operating capital loans from...

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