Borg-Warner Acceptance Corp. v. First National Bank

Todd, Justice.

Borg-Warner Acceptance Corporation (Borg-Warner) appeals from a judgment granting The First National Bank of Pipestone (Bank) priority in certain assets of their mutual debtor. Borg-Warner was the first to file a financing statement covering, among other goods, the same inventory included in a financing statement subsequently filed by the Bank. The lower court considered the subsequent conduct of the parties in determining priority. We reverse.

In the fall of 1970, defendant Alton G. Claussen (Claussen) purchased a hardware store at Pipestone, Minnesota. Borg-Warner and the Bank…