Mid-States Sales Co. v. Mountain Empire Dairymen's Ass'n

STERNBERG, Judge.

Ronald L. Lewis, a dairyman, was a member of the Mountain Empire Dairymen’s Association (MEDA), the defendant. MEDA was Lewis’ exclusive agent for marketing dairy products. Mid-States Sales Co., Inc. (Mid-States), the plaintiff, is a secured creditor of Lewis who sued MEDA for allegedly disposing of Lewis’ milk proceeds in a manner contrary to Mid-States’ security rights in those proceeds.

The trial court concluded that, even though Mid-States had not waived its security interest in Lewis’ milk proceeds, MEDA was not liable for converting either of two disputed amounts. Both…