Frontier Refining Co. v. Home Bank

This appeal is by The Frontier Refining Company (Frontier) from a summary judgment in favor of Home Bank (Home) rendered in an action brought by Frontier against Home and Jack Ferguson for money had and received. A default had been taken against Ferguson which was being tested by a motion to set it aside. The record does not show the result of this motion.

The undisputed facts show that on December 1, 1955, pursuant to a 10-year written lease in which Frontier was lessee, Jack Ferguson and wife (Ferguson) were one of two lessors, and Don Ferguson and wife were the other, Frontier obligated itself to pay rental, the exact amount of which cannot be ascertained from the lease, but which was apparently in excess of $3,000 per month. The lease provided in paragraph 2 thereof, “The rent . . . shall be determined according to . . . Option Agreement . . . dated July 10, 1955.” The option agreement is not part of the record.

In January 1958 Ferguson executed an income assignment addressed to Frontier of “all income payments ...” due to him under the lease to Home “to continue in full force and effect until you [Frontier] are notified to the contrary by Home Bank. ’ ’

On January 20,…