Cenex Harvest States Cooperatives v. U.S. Bank N.A.

MEMORANDUM *

Cenex Harvest States Inc. (“Cenex”) and U.S. Bank (“the Bank”) litigated their respective claims to the 1998 crop proceeds of debtor Dennis Steffler (“Steffler”) in the bankruptcy court, which found in favor of Cenex. The Bank appealed to the district court, which affirmed in part and reversed in part the bankruptcy court’s findings. Cenex now appeals the district court’s decision on several grounds and the Bank cross-appeals. We AFFIRM in part and REVERSE in part the district court’s decision and, with one minor exception, affirm the bankruptcy court’s judgment.

I. Cenex’s Appeal

First, the bankruptcy court's finding of fact that Cenex would be paid from "crop proceeds" was not clearly erroneous. See In Re Dawson, 390 F.3d 1139 , 1145 (9th Cir.2004). The bankruptcy court's finding of fact must be accepted unless upon review, we are left with a firm and definite conviction that a mistake was made. In Re Jan Weilert RV, Inc., 315 F.3d 1192, 1196 (9th Cir.), as amended, 326 F.3d 1028 (9th Cir.2003). There was sufficient evidence in the record to support this finding. Therefore, we are not left with the definite conviction that the bankruptcy court made a mistake and…