Opinion ID: 1844267
Heading Depth: 1
Heading Rank: 5

Heading: Expert Testimony About Violations of the Federal Farm Credit Act.

Text: Another issue raised by the Woods' cross-appeal centers on the district court's refusal to admit certain testimony from the Woods' expert, a lawyer. The Woods were attempting to predicate a negligence claim on alleged violations of the Farm Credit Act of 1971, more specifically, 12 U.S.C. section 2001 et seq. (1975). According to this provision, all loans originated or participated in by a federally chartered corporation like FLB shall be secured by first liens on interests in real estate used as collateral. 12 U.S.C. § 2017 (1975) (now codified at 12 U.S.C. § 2018 (1988)). The Woods wanted their expert to testify that (1) FLB did not have a first lien and (2) because it had no first lien, FLB violated the statute. We think the district court properly refused to admit this testimony for several reasons. First, the Woods were seeking a legal conclusion from the expert. Legal conclusions are peculiarly for the court to decide and not the jury. Preliminarily, the court decides whether a statute imposes a duty, the breach of which imposes liability for damages. If the court concludes there is such a duty, the court instructs on it and the jury determines whether the duty was breached. Second, borrowers do not have an implied right of action for damages under the Farm Credit Act. Nor does violation of federal regulations under the Act give rise to a separate cause of action under state tort law. Production Credit Ass'n v. Ista, 451 N.W.2d 118, 123-24 (N.D.1990) (reviewing a long line of cases, federal and state, holding that there is no implied right of action for violation of the Farm Credit Act). Last, FLB did not violate the express terms of the Act. FLB had a valid first lien against the Woods' interest, albeit such interest was less than a fee simple estate.