CITIBANK N.A. V. PRIME MOTOR INNS LTD. PARTNERSHIP
780 N.E.2d 503 (2002)
NATURE OF THE CASE: Selig (D) appealed a holding that an assignment was a security
interest and that Citi (P) has a superior right.
FACTS: In 1993, Citibank secured a $5.3 million judgment against Field. In 1997 Selig
obtained a judgment against Field in the amount of $19.5 million. Prime Motor Inns L.P.
(PMI) offered to pay Field $500,000 to abandon his proxy fight for ownership of PMI's
hotels, subject to the approval of the PMI partners. Field executed an instrument entitled
'Collateral Assignment' which assigned to Joseph Selig 'all sums due and to become due'
under the PMI settlement 'as security for the payment' of his judgment. Citibank levied upon
the $500,000 shortly before Selig filed a UCC-1 statement in New Jersey. Citibank then
initiated this turnover proceeding. Both the lower courts determined that the Field
assignment to Selig was a security interest and Citi (P) has superiority. This appeal
resulted.
ISSUE:
RULE OF LAW:
HOLDING AND DECISION:
LEGAL ANALYSIS:
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