United States v. Weems

GARZA, Circuit Judge:

The United States appeals the district court’s decision below holding that crop dealers who purchased crops and negotiable warehouse receipts subject to duly recorded crop pledges in favor of the Farmers Home Administration were not liable for conversion. For the reasons stated below, we reverse and remand.

In 1976 and 1977, Charles R. and Tresa C. Weems of Winnsboro, Louisiana, executed three promissory notes secured by chattel mortgages and crop pledges in favor of the Farmers Home Administration (FmHA). Those security instruments were duly recorded in Franklin Parish…