United States v. Chappell Livestock Auction, Inc.

HEANEY, Circuit Judge.

This case was submitted to the District Court on stipulated facts. The United States loaned money to farmers through the Farmers Home Administration, taking a security interest in cattle. Financing statements were duly filed. Defendant auctioneer sold five head of encumbered cattle on behalf of the farmers, and the United States sued the auctioneer for common law conversion. The auctioneer defended on the basis of Rev. *841Stat. Nebraska § 69.109.01.1 That statute exempts an auctioneer from liability when he has no actual knowledge of the security interest and acts in good…