Court Opinion

ID: 9658016
Source: CourtListenerOpinion
Date Created: 2023-08-23 20:44:00.956436+00
Date Added: 2024-06-11T18:13:50.647733
License: Public Domain

HENDERSON, Justice
(concurring).
I concur fully with the majority opinion herein. The ear tags are not controlling— they are transitory. Brands, burned into the hide, do not go away. Ear tags can fall off; a brand does not fall off.
I write to particularly distinguish the present case from that addressed in Aberdeen PCA v. Redfield Livestock, 379 N.W. 2d 829 (S.D.1985). In the present case, the livestock sales pavilion had actual notice that West’s cattle were covered by a security agreement. Ft. Pierre Livestock admitted receiving a letter referring to a financing statement and then placing the letter on its Rolodex for the express purpose of informing employees to be cautious before issuing checks to individuals. This particular letter specifically expressed that Ag Credit checks to individuals. This particular letter specifically expressed that Ag Credit held a first mortgage on certain livestock claimed by certain individuals: “West, Kenneth H., Box 956, Eagle Butte, S.D. 57625, Cattle Branded WW right rib.” This actual notice to Ft. Pierre Livestock, warning them, in effect, of the first mortgage interest was the crucial fact constituting actual notice upon which the trial court relied when rendering its decision. Unlike the situation addressed in Redfield Livestock, however, nothing in this case indicates that the secured party, Ag Credit, waived its security interest by express authorization or prior course of dealing. Hence, there is no parallel in the cases so far as conversion liability is concerned. Unfortunately, a sales barn employee permitted a fast talker to renegotiate a check to him individually which was jointly and properly issued in the first instance. With the proper filing and the actual notice, Ft. Pierre Livestock owed a duty to issue the check jointly as requested by Ag Credit. The trial court properly decided this case under summary judgment.