Sanborn County Bank, Inc. v. Magness Livestock Exchange, Inc.

WUEST, Chief Justice.

Bank appeals trial court’s grant of summary judgment in favor of an auction agency on the issue of conversion. We reverse and remand.

In 1982, Sanborn County Bank, Inc. (Bank) held a perfected security interest in the current and after-acquired livestock of Leonard Vetter (Vetter), a rural Woonsock-et, South Dakota farmer. The security agreement required Vetter to give notice and receive Bank’s written consent before selling or removing livestock or other collateral from Sanborn County. In 1984, Vetter sold sheep covered by the security agreement by delivering the sheep to…