In re Western Iowa Limestone, Inc.
United States Court of Appeals for the Eighth Circuit
538 F.3d 858 (2008)
Western Iowa Limestone, Inc. (WIL) (plaintiff) sold agricultural lime to Independent Inputs, LLC, Paul Leinen, and Leinen, Inc. (the Dealers). The Dealers paid up front, but the lime was kept at WIL’s quarry. WIL entered Chapter 11 bankruptcy. United Bank of Iowa (United Bank) held a perfected security interest in WIL’s inventory. The lime was liquidated during bankruptcy proceedings. The Dealers objected, arguing that they were buyers in the ordinary course of business (BIOC) and had priority over United Bank. The bankruptcy court held that the Dealers were not BIOC, because they never took physical possession and had no right to recover the lime under Article 2 of Iowa’s Uniform Commercial Code (UCC). The Dealers moved to amend, and the bankruptcy court reversed, holding that the Dealers took constructive possession and were BIOC. The Bankruptcy Appellate Panel (BAP) reversed. The BAP held that the Dealers never had constructive possession, and thus did not reach the question of whether constructive possession could confer BIOC status. The Dealers appealed to the United States Court of Appeals for the Eighth Circuit.
Rule of Law
Holding and Reasoning (Hansen, J.)
What to do next…
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 97,000 law students since 2011. Some law schools—such as Yale, Vanderbilt, Berkeley, and the University of Illinois—even subscribe directly to Quimbee for all their law students. Read our student testimonials.
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. Read more about Quimbee.
Here's why 170,000 law students have relied on our case briefs:
- Written by law professors and practitioners, not other law students. 13,800 briefs, keyed to 187 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.