Receivables Purchasing Co. Inc. v. R&R Directional Drilling LLC

Receivables Purchasing Company, Inc. Receivables and R&R Directional Drilling, L.L.C.R&R each claim entitlement to $32,136.84 deposited into the registry of the trial court by Dillard Smith Construction Company Dillard Smith. The trial court found in favor of R&R. Receivables appeals, contending that the trial court made an erroneous factual finding and that the judgment was based on “an erroneous legal theory.” For reasons that follow, we affirm. “Under the clearly erroneous test, we will not disturb the trial court’s factual findings if there is any evidence to sustain them.”1 The record shows that Dillard Smith hired Network Solutions, Inc. as a subcontractor on several projects. Network later assigned all rights that it had to payment for this work to Receivables. On April 2, 2001, Receivables filed a UCC-1 financing statement in Bartow County to perfect Receivables’ security interest in these payments and thus its entitlement to the payments. In an error that has now become the crux of this dispute, the financing statement listed the debtor as “Net work Solutions, Inc.” rather than the correct name “Network Solutions, Inc.”2

R&R subsequently performed drilling services for Network, for which R&R was not paid. On May 23, 2002, R&R obtained a judgment against Network in the amount of $40,993.74. According to R&R’s counsel, R&R performed a UCC search under the name “Network Solutions, Inc.” to determine if any individual or entity held a superior claim to the funds. When the search failed to reveal any debtor named Network Solutions, Inc., R&R filed a summons and affidavit of garnishment on July 12, 2002 against Network and Dillard Smith for the amount owed to R&R. Dillard Smith answered the summons, stating that it was holding a sum of $32,136.84 which was owed to Network, but that these funds were also being claimed by Receivables. Accordingly, it requested the court to allow these funds to be deposited with the court. Dillard Smith also filed a counterclaim requesting that the court order that R&R and Receivables interplead their respective claims.