Ronald L. Comes

In its newly released 2023 edition, The Best Lawyers in America® has recognized 44 McGrath North attorneys in the full range of specialty practice areas key to supporting businesses of all sizes across a broad range of industries, and 28 attorneys have been recognized for 10 years or more.  Of these attorneys recognized based on peer-review surveys, seven were named “Lawyer of the Year.” This honor is awarded to only one attorney with the highest overall peer-feedback for a specific practice area and geographic location.  

In 2010 we reported on an unfavorable decision for secured lenders to livestock producers in Iowa issued by the Iowa District Court for Sioux County, Doon Elevator Company v. American State Bank, Case No. LACV022572 (the “Doon Decision”). The Doon Decision allowed an elevator that supplied feed to a hog producer to prime a lender’s prior perfected security interest in the producer’s hogs and their proceeds. The Iowa District Court ruled in favor of the feed supplier despite the fact that the feed supplier had not complied with the notice to prior secured creditor requirements contained in I.C.A. §570A.2(3). We warned that the Doon reasoning, if eventually accepted by the Iowa Supreme Court, could have serious consequences to lenders who provide secured financing to Iowa livestock producers.  

Lenders engaged in agricultural lending to Iowa livestock producers need to be aware of a recent unpublished decision of the Iowa District Court for Sioux County, Doon Elevator Company v. American State Bank, Case No. LACV022572 (the “Doon Decision”).  The Doon Decision involved the efforts of an elevator that supplied feed to a hog producer to prime a lender’s prior perfected security interest in the producer’s hogs and their proceeds.  The Iowa District Court ruled in favor of the feed supplier despite the fact that the feed supplier had not complied with the notice requirements in I.C.A. §570A.2(3).  As noted below, although Doon is unpublished, and its reasoning is questionable, it nevertheless has the potential to seriously impact lenders who finance Iowa livestock producers.