Austin Tupler Trucking v. Paula F. Hawkins

Barnett Bank filed a petition in the ancillary receivership proceedings against Midland Insurance Company (Midland), an insolvent insurer, seeking court approval of a setoff under section 631.281, Florida Statutes (1985). The trial court denied the petition and Barnett appeals. We reverse because Barnett demonstrated the mutuality of obligation necessary to establish the right to an offset under section 631.281. We also find that allowing the offset will not give Barnett an unlawful preference.