Wabasso State Bank v. Caldwell Packing Co.

Otis, Justice.

In this action plaintiff alleges that defendants purchased and converted to their own use certain feeder cattle in which plaintiff has a security interest. The trial court granted defendants summary judgment, holding that plaintiff had authorized the sale by its course of dealing with its debtor and that plaintiff’s security interest did not survive the sale. We reverse.

The question presented is whether one who finances farming operations and takes a security interest in cattle under an agreement which prohibits the sale of the collateral without the financier’s prior written…