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STATE BANK & TRUST CO. v. INS. CO. OF THE WEST

No. 96-11214.

132 F.3d 203 (1997)

STATE BANK & TRUST COMPANY, DALLAS, Plaintiff-Appellant, v. INSURANCE COMPANY OF THE WEST, Defendant-Appellee.

United States Court of Appeals, Fifth Circuit.

December 29, 1997.

Attorney(s) appearing for the Case

James Francis Bullock, Godwin & Carlton, Dallas, TX, for Plaintiff-Appellant.

Brian Watson Erikson, Robert Scott Luttrull, Quilling, Selander, Cummiskey, Clutts & Lownds, Dallas, TX, for Defendant-Appellee.

Karen Maedgen Neeley, Independent Bankers Association of Texas, Austin, TX, for Independent Bankers Association of Texas, Amicus Curiae.

John M. Heasley, Texas Bankers Association, Austin, TX, for Texas Bankers Association, Amicus Curiae.

Before REYNALDO G. GARZA, SMITH and WIENER, Circuit Judges.

WIENER, Circuit Judge:

Defendant-Appellee Insurance Co. of the West (ICW), acting as surety, issued performance bonds on behalf of DRT Mechanical Corp. (DRT) — a subcontractor — on two construction projects. DRT had previously given Plaintiff-Appellant State Bank & Trust Co. (State Bank) a security interest in its construction tools, equipment, and inventory ("construction materials") as collateral for a loan. DRT defaulted on both the loan and its...

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