Ag Services, Inc. v. Empfield

587 N.W.2d 871 (1999)

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Ag Services, Inc. v. Empfield

Nebraska Supreme Court
587 N.W.2d 871 (1999)

Facts

In November of 1994, Ag Services of America, Inc. (Ag Services) (plaintiff) loaned C.M.R., Inc. (C.M.R.) money and took a security interest in, among other things, C.M.R.’s farm products, inventory, and crops. In December of 1994, Ag Services filed financing statements covering its interest, which described certain crops growing or to be grown on land owned by Darrell E. Empfield (defendant). In April of 1995, C.M.R. leased land from Empfield, which C.M.R. agreed to pay for in two installments. As security, Empfield took an interest in the crops growing on the leased premises during the lease term. Empfield never filed a financing statement or other document regarding his interest. C.M.R. defaulted on its lease agreement with Empfield by not paying the second installment. Accordingly, Empfield sold certain crops that C.M.R. had stored on the leased premises. Thereafter, C.M.R. defaulted on its loan agreement with Ag Services. Ag Services sued Empfield for, among other things, conversion of the crops that Empfield sold. Specifically, Ag Services argued that its perfected security interest in the crops had priority over Empfield’s interest. Ag Services moved for summary judgment, which the trial court granted. Empfield appealed and sought equitable relief.

Rule of Law

Issue

Holding and Reasoning (Wright, J.)

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