United States v. Richard E. Tugwell

The Farmers Home Administration (FmHA), a secured party holding a perfected security interest in farm equipment, sued Richard E. Tugwell for conversion after Tugwell bought the equipment from the debtor. FmHA alleged that the equipment, a grain combine, broke down during its use by Tugwell and that Tugwell has wrongfully deprived FmHA of its rights to the combine. The issue is whether, under the facts alleged by FmHA, Tugwell is entitled to summary judgment. The district court, 597 F.Supp. 486, found that although the facts technically established conversion, the case was not an appropriate…