Opinion ID: 2083741
Heading Depth: 1
Heading Rank: 13

Heading: agp

Text: AGP asserts under a variety of theories that the PSC erred in denying its claim as set forth in its claim affidavit, in which it alleged it was the owner of 197,500 bushels of corn and 170,000 bushels of soybeans with a total value of $931,366.61. The PSC determined that on March 11, 2002, AGP was neither an owner, depositor, nor storer of grain at AEI. Finding no error on the record relative to this determination, we reject AGP's arguments on appeal. AGP's claim of ownership is based on eight warehouse receipts, Nos. B665933, B665934, B665935, B665938, B665943, B665944, B665947, and B665948. AGP asserts that the eight receipts demonstrate that it had purchased grain which was being stored at AEI on March 11, 2002. The PSC denied AGP's claim because either the grain had been delivered and AGP had failed to surrender the receipts, or the receipts were in actuality advances to AEI, at best in the nature of collateralized receipts. The record includes the eight warehouse receipts upon which AGP relies and various signed contracts between AEI and AGP, some of which refer to advances against warehouse receipts. In addition to these receipts and contracts, the record contains the testimony and an affidavit from Donald A. Woodburn, AGP's director of marketing. Woodburn indicated in his affidavit that AGP took delivery on some grain, and the record shows that some grain, pursuant to contract and corresponding to receipts at issue, had been delivered. Woodburn further testified that when AGP paid money to AEI relative to the grain referenced in the receipts, it intended to obtain title to the grain at that time. Woodburn acknowledged, however, that AGP did not pay storage charges on any of the grain referenced in the receipts for which it had not taken delivery. With regard to AEI's records concerning its transactions with AGP, the record contains two separate single-page documents dated February 28, 2002, entitled [AEI] Sale Contract Report by Patron. One document is labeled Commodity: Corn, and the second is labeled Commodity: Soybeans. These documents reflect a total of eight AGP transactions with AEI, three for corn and five for soybeans. Under each AGP transaction listed is a Remarks section, containing either the notation PPD, 90% PPD, PPD 90%, or 90% Advanced. During the hearing, the PSC examined Peterson with regard to the business practices between AEI and AGP. Consistent with the two documents noted immediately above, Peterson testified in effect that AEI would issue collateralized warehouse receipts to AGP in exchange for AGP's payment of advances for future grain. The substance of Peterson's testimony was to the effect that AEI considered title to the grain referenced in the receipts would pass to AGP after delivery of the grain to AGP. Finally, the record reflects that AGP held several federal grain warehouse licenses. As a result of these licenses, AGP was required to report to the federal government, among other items, receipted grain it owned in Nebraska that was stored in warehouses other than its own. The completed reporting document (Statement) is in the record, and the space in the Statement regarding commodities stored in other warehouses is blank. The details of this completed Statement are as follows: The Statement, dated August 12, 2002, is entitled U.S. Department of Agriculture ... Warehouseman's Statement and Examiner's Comparison of Obligations and Stock. The Statement lists AGP as the Warehouseman. The Statement includes a Warehouseman's Certification, which provides, in pertinent part, that the warehouseman certif[ies] to the ... U.S. Department of Agriculture, subject to penalties of applicable laws for knowing false representations and similar offenses ... that the information contained in the above Warehouseman's statement is, to the best of [the warehouseman's] knowledge and belief, a true, correct and complete statement. Below this certification is a space containing the signature of AGP's treasurer as the Warehouseman or Authorized Agent. Although the Statement contains spaces for AGP to list corn and soybeans in Other Warehouses For Storage, AGP has left those spaces empty, thereby advising the government that it had no ownership of grain in other warehouses in Nebraska. Based on the evidence, the PSC denied AGP's claim. As an initial matter, the PSC determined that several of the receipts and the contracts referenced in those receipts had been satisfied by delivery and that AGP failed to surrender its receipts. Thus the PSC determined that those receipts had no residual value. With regard to the remaining receipts, the PSC concluded that these receipts showed AGP was not an owner but a creditor, having made advances to AEI for the future purchase of grain. The PSC concluded the receipts were at best collateralized receipts held to secure advances made by AGP to AEI. Accordingly, the PSC determined that on March 11, 2002, AGP was not an owner, depositor, or storer of grain at AEI and was not entitled to a pro rata distribution of the proceeds. On appeal, AGP challenges the PSC's determination and raises certain arguments similar to those raised by RCC and rejected supra. AGP also states that there is evidence in the record of  agreements to sell the underlying commodity from [AEI] to AGP, brief for cross-appellant AGP at 21, and, although acknowledging the existence of advances, asserts that such advances resulted in actual sales and deliveries, id. at 20. AGP claims that the PSC's decision is not supported by competent evidence. We disagree. The record, some of which is summarized above, contains evidence supporting the PSC's determination that some of the grain reflected in the receipts upon which AGP base[d] its claim ha[d] already been delivered to AGP. The record thus supports the PSC's decision that certain receipts have no residual value. Based on the foregoing, AGP was not an owner, depositor, or storer of grain represented by these receipts. With regard to other receipts, the PSC determined that AGP's transactions with AEI were not actual purchases of grain for which AGP took title at the time the receipts were issued, but, rather, were the advance of sums for the future purchase of grain. Indeed, AGP's brief on appeal refers to advances. Evidence, including Peterson's testimony and other documents in the record, supports the PSC's determination that rather than title passing upon the making of the contracts, the receipts reflected advances on future purchases for which title had not yet passed. In this regard, we note that the signed contracts contained in the record incorporate the National Grain and Feed Dealers Association trade rules which provide that title passes upon delivery. As noted earlier in our analysis, an appellate court will sustain the decision of the PSC if there is evidence in the record to support its findings. In re Proposed Amend. to Title 291, 264 Neb. 298, 646 N.W.2d 650 (2002). Contrary to AGP's claim, the PSC's determination that on March 11, 2002, AGP was not an owner, depositor, or storer of grain at AEI and, thus, was not entitled to share in a distribution of the proceeds is supported by competent evidence. AGP also asserts that the PSC's determination is contrary to case law and to various provisions of the Nebraska Uniform Commercial Code. The cases upon which AGP relies are distinguishable. For example, whereas AGP claims to be a buyer and thus a storer of grain, State ex rel. P. Serv. C. v. R.F. Gunkelman & Sons, Inc., 219 N.W.2d 853 (N.D.1974), refers to the rights of sellers of grain as reflected in warehouse receipts. Further, although AGP may have certain rights against AEI, given the evidence, AGP's arguments based on the code do not establish that AGP was an owner, depositor, or storer of grain at AEI on March 11, 2002, for purposes of § 88-547(1). We have considered each of AGP's assertions and found such assertions to be without merit. The PSC's determination is neither arbitrary nor capricious, and it is supported by competent evidence.