The SD Supreme Court handed down one decision this morning,
holding inter alia:
1) Parents prevail in dispute
with son-in-law’s bank over security interest in cattle
Summary follows:
FIRST DAKOTA NATIONAL
BANK v. GREGG, 2021 S.D. 53: This dispute is nicely summarized in the opening
paragraph of the Court’s opinion:
[¶1.]
Arthur and Jerilyn Gregg entered into an oral agreement with their son-in-law,
Tyler McGregor, whereby Tyler would feed the Greggs’ cattle to finish in return
for payment based on the weight gained by the cattle while in Tyler’s care.
Tyler did not inform his lender, First Dakota National Bank (First Dakota),
that the Gregg cattle were in his possession. Instead, Tyler represented to the
bank that the cattle were his. When Tyler’s fraudulent conduct was uncovered, a
dispute arose over whether First Dakota’s security interest in Tyler’s
collateral attached to the Greggs’ cattle. After a court trial, the circuit
court determined that the Greggs were not estopped from asserting that Tyler
had no rights in their cattle, and therefore, First Dakota did not have a
security interest in the Greggs’ cattle. We affirm.
The Court’s decision is unanimous with opinion authored by
Justice DeVaney.
This decision may be accessed at
http://ujs.sd.gov/Supreme_Court/opinions.aspx .
