Opinion ID: 1940600
Heading Depth: 1
Heading Rank: 2

Heading: facts

Text: Assman operates a retail establishment in Mission, South Dakota. He sells farm machinery and acts as a dealer for J.I. Case Corporation (Case). Assman and Case Credit, a wholly owned subsidiary of Case, entered into a Retail Financing Agreement on November 1, 1973. Assman sold three new Case tractors to Otto Huber & Sons, Inc., (Hubers) on March 14, 1975. This sale was subject to a Retail Installment Contract (Security Agreement), which Assman later assigned to Case Credit. Subsequently, Farmers State Bank, of Kilgore, Nebraska, commenced foreclosure proceedings against Hubers. Case Credit was named as a party defendant. On July 22, 1977, Case Credit obtained a judgment against Hubers for $109,758.35. This amount represented Hubers' outstanding balance on (1) the three Case tractors sold by Assman; (2) one Case 1370 tractor; (3) one Case 1070 tractor; (4) one 990 David Brown tractor; and (5) one Case bottom plow. Hubers then filed for bankruptcy, which stayed collection of the judgment. As of April 1977, the amount Hubers owed on the three tractors was $78,221.87. [1] Bankruptcy trustee, Robert Warder, and Case Credit agreed that the three tractors would be sold at a Bankruptcy Court auction sale on October 14 and 15, 1977. It was also decided that Case Credit's liens would be applied to the proceeds of the sale and sale expenses would be prorated. At the auction sale, which Assman attended, Case Credit purchased the three tractors for $76,000. [2] To enforce the Huber security agreement, Case Credit expended $5,554.94 in legal fees. Case Credit, relying on the Retail Financing Agreement, debited Assman's dealer reserve account, controlled by Case Credit, [3] to cover legal fees and the deficiency experienced by Case Credit when it purchased the three tractors at the auction sale. Case Credit then sold the three tractors to Case Power and Equipment of Pierre, South Dakota, for $76,000. [4] Case Power proceeded to resell the tractors and realized a total net profit of $4,973.47. Assman initiated action against Case Credit by service of a Complaint, filed February 14, 1980. An Amended Complaint was filed on May 27, 1981. Case Credit submitted a Motion for Judgment on the Pleadings which was denied, post Hearing held on May 27, 1981. A trial to the court was held before the Honorable Marvin S. Talbott, Todd County, South Dakota. Assman was awarded a money judgment of $18,061.38. The circuit court ruled: (1) Case Credit could not hold Assman liable for attorney's fees ($5,554.94). (2) Assman was entitled to the profit experienced by Case Power when it resold the three tractors ($4,973.47), which amount would be reduced by the deficit Case Credit suffered when it purchased the tractors at the auction sale ($2,221.87) to equal $2,751.60. (3) Assman was also entitled to interest on the total ($8,306.54) of (1) ($5,554.94) and (2) ($2,751.60). Pursuant to SDCL §§ 54-3-5 and 54-3-16, interest on $8,306.54 was computed and $9,754.84 in interest was added to the judgment for a total judgment as of July 9, 1986, of $18,061.38. Case Credit appeals.