The plaintiffs, private lenders, advanced mortgage funds to the defendants for the purchase of a farm and equipment, secured by a general security agreement (GSA) on the equipment.
The defendant who sold the farm and equipment later removed and sold some of the equipment after the purchasers defaulted and the plaintiffs took possession of the farm.
The plaintiffs sued the seller for conversion and the purchaser for fraudulent misrepresentation.
The court found that property in the equipment passed to the purchaser on closing, giving the plaintiffs a valid GSA.
The seller was found liable for conversion and ordered to pay $35,533 in damages.
The claims against the purchaser and the seller's counterclaim and crossclaim were dismissed.
