Whitworth v. Krueger

SCOGGIN, District Judge (Retired).

This appeal involves two conflicting claims to the proceeds from the sale of a bankrupt’s cattle. The district court held that the plaintiffs, who had sold cattle to the bankrupt and had filed a financing statement perfecting their security interest in the cattle sold and all cattle thereafter acquired as replacement for the cattle sold, had superior rights in the proceeds of the sale than did the defendants, who had placed 55 cows in the bankrupt’s possession pursuant to an agreement which they had characterized as a “lease”, but for which they had not filed…