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KEYBANK NAT'L ASS'N v. PAL I, LLC

No. 38645.

311 P.3d 299 (2013)

KEYBANK NATIONAL ASSOCIATION, a national banking association, Plaintiff-Respondent, v. PAL I, LLC, an Idaho limited liability company, Defendant-Appellant, and Brian Christensen, an individual; L.A. Parkinson, an individual; Barney Dairy, Inc.; D.J. Barney, an individual; William Davis, an individual; Lois Davis, an individual; Dell Ray Barney, an individual; and Dell J. Barney, an individual, dba Barney Towing & Recovery, Defendants.

Supreme Court of Idaho, Idaho Falls, August 2013 Term.

October 3, 2013.

Attorney(s) appearing for the Case

Smith, Driscoll & Associates, PLLC, Idaho Falls, for appellant. B.J. Driscoll argued.

Givens Pursley, LLP, Boise, for respondent. Amber N. Dina argued.

J. JONES, Justice.

This case involves a judgment creditor, PAL I, LLC, that levied and executed upon collateral in which KeyBank had a perfected security interest. PAL argued that because KeyBank did not file a third-party claim to the collateral in accordance with I.C. § 11-203, it waived its interest in the collateral. The district court held that a perfected security interest survives a creditor's failure to comply with I.C. § 11-203, that KeyBank's security...

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