In re Del-Maur Farms, Inc.

2011 WL 2847709, 75 U.C.C. Rep. Serv. 2d 63 (2011)

From our private database of 46,100+ case briefs, written and edited by humans—never with AI.

In re Del-Maur Farms, Inc.

United States Bankruptcy Court for the District of Nebraska
2011 WL 2847709, 75 U.C.C. Rep. Serv. 2d 63 (2011)

Facts

In 2007, Del-Maur Farms, Inc. (Del-Maur) (debtor) entered into an agreement with CoBank Farm Credit Leasing Services Corporation (CoBank) (creditor). The agreement took the form of a lease and provided that Del-Maur would make 60 monthly installment payments of $1,206.41 for a Grow Master pig-sorting system. The agreement provided that Del-Maur could purchase the Grow Master at the end of 60 months for $6,584.40, which was 10 percent of the Grow Master’s original cost. The agreement provided that if Del-Maur did not exercise its purchase option, the lease would automatically renew for 12 months with a projected monthly renewal rent of $579.25. The agreement stated that upon expiration of that renewal term, Del-Maur could either return the Grow Master or purchase the Grow Master for an amount equal to its then-fair market value. The agreement provided that Del-Maur’s obligation to pay rent and perform its other duties under the agreement was irrevocable. Del-Maur subsequently filed for bankruptcy. CoBank filed a claim in the bankruptcy proceeding and sought preferential treatment available to lessors under 11 U.S.C. § 365. Del-Maur objected, asserting that the agreement regarding the Grow Master was not actually a lease and was instead a purchase agreement and security interest. In analyzing Del-Maur’s objection, the court considered whether the agreement should be a security agreement or a lease under Nebraska’s statutory Uniform Commercial Code (UCC).

Rule of Law

Issue

Holding and Reasoning (Mahoney, J.)

What to do next…

  1. Unlock this case brief with a free (no-commitment) trial membership of Quimbee.

    You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 744,000 law students since 2011. Some law schools—such as Yale, Berkeley, and Northwestern—even subscribe directly to Quimbee for all their law students.

    Unlock this case briefRead our student testimonials
  2. Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.

    Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students.

    Learn about our approachRead more about Quimbee

Here's why 744,000 law students have relied on our case briefs:

  • Written by law professors and practitioners, not other law students. 46,100 briefs, keyed to 987 casebooks. Top-notch customer support.
  • The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
  • Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
  • Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.

Access this case brief for FREE

With a 7-day free trial membership
Here's why 744,000 law students have relied on our case briefs:
  • Reliable - written by law professors and practitioners, not other law students
  • The right length and amount of information - includes the facts, issue, rule of law, holding and reasoning, and any concurrences and dissents
  • Access in your class - works on your mobile and tablet
  • 46,100 briefs - keyed to 987 casebooks
  • Uniform format for every case brief
  • Written in plain English - not in legalese and not just repeating the court's language
  • Massive library of related video lessons - and practice questions
  • Top-notch customer support

Access this case brief for FREE

With a 7-day free trial membership