Valentine Production Credit Ass'n v. Spencer Foods, Inc.

Colwell, District Judge.

This is an appeal from summary judgment. Suit was brought for conversion of 63 head of cattle subject to a security agreement in favor of plaintiff, Valentine Production Credit Association. The owner of the cattle, Eud Ferris, Jr., sold them to defendant, Spencer Foods, Inc., a meat packer, on April 1, 1971, for $19,839.51. Plaintiff claims the proceeds of that sale were not applied to its security debt and it now has an interest in the proceeds. Ferris is insolvent. Plaintiff’s petition was filed March 27, 1974. Defendant’s answer alleges payment; waiver; irregular,…