North Dakota Public Service Commission v. Woods Farmers Cooperative Elevator Co.

ERICKSTAD, Chief Justice.

Farmland Mutual Insurance Company (Farmland), the surety on a warehouseman’s bond for Woods Farmers Cooperative Elevator Company (Woods), appealed from a district court judgment requiring it to pay to the North Dakota Public Service Commission (PSC) the sum of $780,000 for the payment of claims in accordance with the PSC’s report and recommendation, as amended by the district court. We affirm in part and modify the judgment.1

Woods, a licensed grain warehouse, filed a petition for liquidation under Chapter 7 of the Bankruptcy Code on April 13, 1989. Wayne Drewes was…