Reconstructing the diversion of dairy revenue
The record traced changes in milk payments after the borrowers defaulted. The son’s share increased from 15 percent to 50 percent, followed by a direction that all milk payments go to him. Tax returns, payment histories and the dairy cooperative’s records helped test the explanation for those changes.
The court found that the additional proceeds were transferred without consideration while the borrower was insolvent and with the purpose of hindering and delaying the bank’s collection efforts. It held the transfers voidable under the Minnesota Uniform Voidable Transactions Act.
Resolving the disputed cattle ownership claim
The son also asserted ownership of the cattle. The court found that he had not produced documentation or credible support for a lawful transfer and that the bank’s security interest continued despite the purported transfer. The court also granted relief on its own initiative on the cattle-transfer claim in Count Seven, which was not among the counts listed in the bank’s summary-judgment motion. It held that the transfer violated the Minnesota Uniform Voidable Transactions Act.
Separately, 152 cows had been sold without the bank’s consent. The court rejected the asserted feeder’s lien and ordered that the bank receive all proceeds from that sale, which had yielded $103,997.49.
The result
The order granted summary judgment, dismissed Bryant Weis’s counterclaims, awarded $499,309.36 in damages, and established the bank’s entitlement to the cattle-sale proceeds and its enforcement-related attorney fees and expenses.
Read the court order
Bremer Bank, National Association v. Carl Weis et al., No. 20-CV-20-86, Findings of Fact, Conclusions of Law and Order for Judgment (Dodge County District Court, August 4, 2020).
Read the August 4 2020 court order
Results depend on the facts and law of each matter.