United States v. Public Auction Yard, Billings, Montana

In the decision below, reported as United States v. Shaver, 447 F.Supp. 216 (D.Mont. 1978), the District Court granted summary judgment to appellee, Public Auction Yards, Billings, Montana, and denied the cross-motion for summary judgment made by the United States. We have appellate jurisdiction ( 28 U.S.C. § 1291 ).

The action involves the interpretation and application of a Montana statute (M.C.A. § 52-319, recodified in 1979 as M.C.A. § 81-8-301) to a loan by a federal agency secured by an executed security agreement in conformity with the Uniform Commercial Code as adopted in Montana.

The loan was made by the Farmer’s Home Administration in 1969. The security agreement was recorded by the federal agency with the county recorder on November 18, 1969, and with the general recorder of marks and brands on November 26,1969. On December 3,1969, a cow encumbered by the security agreement was sold by the Public Auction Yards in Billings for $135.73. The notice filed with the general recorder of marks and brands was not listed with the Billings office of the Montana Livestock Commission until December 5, 1969. In 1975 the United States brought this action for conversion of the…