ST. LOUIS (CN) – The major creditor of a failed Minnesota dairy farm is not required to give an accounting of the sale of the farm to a minor creditor, the 8th Circuit ruled.
Border State Bank had argued that it was entitled to proceeds from the liquidation sale of Dutch Farms. Major creditor AgCountry Farm Credit Services won a summary judgment in district court, and Judge Murphy affirmed it.
AgCountry argued that Border State knew of the liquidation sale, even though AgCountry had no obligation to inform Border State of the sale.
Murphy ruled that Border State did not produce sufficient evidence of the sale, and that AgCountry’s debt was not satisfied by the sale, so Border State was not entitled to an accounting.