Commerce Bank of St. Joseph v. State

The opinion of the court was delivered by

Lockett, J.:

Commerce Bank of St. Joseph, N.A., (Commerce Bank) lent money to a licensed public warehouse, Twombly Grain Company, Inc., (Twombly Grain) for grain storage. The bank held, as collateral, warehouse receipts issued on company-owned grain. Grain shortages were concealed by the grain company for many years and the bank loans were not repaid. When the shortages were discovered, in addition to suing Twombly Grain, Commerce Bank sued the Kansas State Grain Inspection Department (KSGID) and its chief warehouse examiner, Saverio Reda, claiming its…