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RENDERED:  DECEMBER 9, 2005; 10:00 A.M.
TO BE PUBLISHED

Commonwealth of Kentucky
Court of Appeals

NO. 2004-CA-002062-MR



UPS CAPITAL BUSINESS APPELLANT
CREDIT


APPEAL FROM CLARK CIRCUIT COURT
v.  HONORABLE WILLIAM T. JENNINGS, JUDGE
ACTION NO. 03-CI-00170


C.R. CABLE CONSTRUCTION, INC.;   APPELLEES
PATTON MANAGEMENT CORP. (F/K/A  
WRIGHT & LOPEZ, INC.); PATTON
MANAGEMENT GROUP, INC. (D/B/A
WRIGHT & LOPEZ); T.D.A. PROPERTIES,
INC. (D/B/A AULBACH AUCTIONEERS);
ALLTEL COMMUNICATIONS PRODUCTS, INC.



OPINION
AFFIRMING IN PART, REVERSING
IN PART, AND REMANDING

** ** ** ** ** ** ** **

BEFORE: DYCHE AND GUIDUGLI, JUDGES; PAISLEY, SENIOR JUDGE.1  

DYCHE, JUDGE:  UPS Capital Business Credit (UPS Capital), appeals from a July 15, 2004, order of the Clark Circuit Court invoking the equitable doctrine of marshaling assets, thereby requiring UPS Capital to seek satisfaction of a debt on two notes owed by Patton Management Group, Inc. (d/b/a Wright & Lopez) and Patton Management Corp. (f/k/a Wright & Lopez, Inc.) (collectively Patton Management) through alternative sources, including loan guaranties and other secured assets, prior to exercising its first-priority security lien against garnished cash accounts currently being held by the circuit court.  The invocation of the doctrine facilitates the efforts of C.R. Cable Construction, Inc. (C.R. Cable) to obtain satisfaction of its judgment against Patton Management for breach of contract from the garnished funds.  
1 Senior Judge Lewis G. Paisley sitting as Special Judge by assignment of the Chief Justice pursuant to Section 110(5)(b) of the Kentucky Constitution and Kentucky Revised Statute 21.580.
2 At some point subsequent to the execution of the notes, First International changed its corporate identity to UPS Capital, and UPS Capital became the creditor under the notes.

3 UPS Capital does not appear to challenge invocation of the marshaling assets doctrine with respect to other available Patton Management collateral.  
For the reasons stated below, we reverse the circuit court

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Kentucky Law