Brown Wholesale Electrical Co. v. Trustees of Hawaii Electricians Annuity
Opinion
Lead Opinion
Farris, J.
The Trustees of the Hawaii Electricians Trust Funds appeal from the dismissal of their claims against Excel Electrical Supply Co. We reverse.
BACKGROUND
Utah Construction & Development was the general contractor for the Hawaii Job Corps Center federal construction project. Pursuant to the Miller Act, 40 U.S.C. § 270a(a)(2), Utah Construction furnished the United States with a payment bond, issued by National Fire Insurance of Hartford, that protected all persons providing materials and equipment for the project. Utah Construction subcontracted with TW Electrical for the project’s electrical work, and TW Electrical in turn hired Excel Electrical to furnish material.
TW Electrical financed its purchase of material from Excel under a “joint check agreement.” Under that agreement, TW Electrical granted Excel a purchase money security interest in the material and its “product and/or proceeds.” Also, TW Electrical ordered Utah Construction to “make all checks in payment of sums due it on the job jointly to [TW Electrical and Excel].” Excel never filed a financing statement on its security interest in the electrical material and its proceeds.