Quimbee logo
DMCA.com Protection Status

In re Montagne

417 B.R. 214 (2009)

Case BriefRelatedOptions
From our private database of 35,400+ case briefs...

In re Montagne

United States Bankruptcy Court for the District of Vermont

417 B.R. 214 (2009)

Facts

Michael Montagne (debtor) had a dairy business—Montagne Heifers, Inc. (MHI)—and filed for Chapter 12 bankruptcy. In 2005, Ag Venture Financial Services, Inc (Ag Venture) (creditor) lent $457,000 to MHI, with a loan agreement and security agreement in favor of Ag Venture, listing collateral as including all livestock and the sale proceeds of any livestock. No financing statement was then recorded. In 2006, Michael separated from his wife, Diane. The separation agreement did not mention Diane having any right in the livestock or their sale proceeds. In September 2007, Ag Ventures released Diane from liability for the MHI debt. On November 13, 2007, Diane filed a financing statement regarding MHI, indicating a security interest in the livestock and their sale proceeds. On November 20, 2007, Michael executed and delivered a promissory note to John Montagne for $100,000 constituting consideration for his purchase of John’s shares of MHI. Michael also executed a security agreement in John’s favor, describing collateral as including all farm inventory and proceeds. On November 24, 2007, Michael sold a herd of MHI’s cows for $500,000. On November 28, 2007, Michael gave Diane a check for $240,000, part of the sale proceeds. On November 30, 2007, Ag Venture filed a financing statement for the 2005 loan. On December 4, 2007, John filed a financing statement for the November 20, 2007 loan. In the bankruptcy proceeding, a priority contest arose regarding the $240,000 check. John and Diane raised arguments against the validity or priority of Ag Venture’s security interest, largely contending that either or both parties were claiming purchase-money security interests (PMSI). John argued that Ag Venture had failed to record within 20 days of its security interest’s creation and that John should have priority, as his interest related back to his November 20 security-agreement execution rather than his December 4 financing-statement filing. John and Diane also argued that Ag Venture had waived its interest by releasing Diane and that Ag Venture’s failure to file before the cattle sale lost Ag Venture its perfection. Ag Ventures and John each sought summary judgment and priority status as to the $240,000 check.

Rule of Law

Issue

Holding and Reasoning (Brown, 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 617,000 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 617,000 law students have relied on our case briefs:

  • Written by law professors and practitioners, not other law students. 35,400 briefs, keyed to 984 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 617,000 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
  • 35,400 briefs - keyed to 984 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