Michigan National Bank v. Michigan Livestock Exchange

Defendant, Michigan Livestock Exchange, appeals by leave granted from an order granting partial summary disposition in favor of plaintiff, Michigan National Bank of Detroit. The Tuscola Circuit Court held that the exchange, which had auctioned off livestock in which the bank held a security interest, was liable to the bank for conversion. The circuit court reached this conclusion despite the fact that the exchange had no knowledge of the bank’s security interest.

In June, 1978, the bank loaned money to William and Rosemary Christacopulos. As security for the loan, the bank took a security…