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BANK OF KANSAS v. HUTCHINSON HEALTH SERVICES, INC.

No. 62,727

246 Kan. 83 (1990)

785 P.2d 1349

BANK OF KANSAS, Appellee, v. HUTCHINSON HEALTH SERVICES, INC., a Kansas corporation, and THE STATE OF KANSAS, DEPARTMENT OF SOCIAL AND REHABILITATION SERVICES, Defendants, and THE CENTRAL STATE BANK, Trustee, Intervenor, and THE STATE DEPARTMENT OF HUMAN RESOURCES OF KANSAS, Intervenor/Appellant.

Supreme Court of Kansas.

Opinion filed January 19, 1990.

Attorney(s) appearing for the Case

H. Dean Cotton, general counsel, of Department of Human Resources, argued the cause, and Glenn H. Griffeth, of Department of Human Resources, was with him on the briefs for appellant.

David E. (Rick) Roberts, of Dennis O. Smith, Chartered, of Hutchinson, argued the cause and was on the briefs for appellee.

The opinion of the court was delivered by

PAUL E. MILLER, District Judge, assigned:

This case is a priority battle between the Bank of Kansas (Bank), which has a perfected security interest in Hutchinson Health Services, Inc.'s (HHS) accounts receivable, and the Kansas Department of Human Resources (DHR), which claims a right to set off HHS' delinquent unemployment contributions against funds owed to the debtor by...

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