Federal Deposit Insurance v. Northern Montana Gas Co.

First Security Bank filed a complaint in the District Court for the Ninth Judicial District in Toole County in which it sought to recover amounts allegedly owed by Northern Montana Gas Company to Montana Pacific Oil & Gas Company (MOPOG) based on well head purchase contracts which Northern allegedly breached. Northern’s answer included defenses in which it claimed a right to offset against any recovery obtained by the bank the amount of judgments entered in its favor against First Security’s assignor, MOPOG. After a trial, the court concluded that the Federal Deposit Insurance Corporation…