Estate of Rhyner v. Farm Credit Bank of Spokane

OPINION

RABINO WITZ, Justice.

This appeal presents the question whether the superior court erred in fixing the deficiency due a preferred ship mortgagee. We reverse.

I. FACTUAL AND PROCEDURAL BACKGROUND.

In 1982, Ken Kirkman, Jane Kirkman and Richard R. Rhyner formed a partnership known as K & R Fish. The partnership borrowed $210,300 from the Puget Sound Production Credit Association 1 to purchase an aluminum skiff and a seiner known as the Kog Won Ton.

Rhyner and Ken Kirkman signed the loan and security agreements as partners, and all three persons signed as individuals. In addition, each…