In re Claims Against Pierce Elevator, 291 Neb. 798

Background

Pierce Elevator, Inc. (PEI) surrendered its grain warehouse license March 4–5, 2014; the Nebraska Public Service Commission (PSC) closed the warehouses, took title to stored grain, and held a claims hearing under the Grain Warehouse Act and Grain Dealer Act.
PSC sold stored grain, approved $4.62M in warehouse claims (paid from proceeds) and $3.34M in dealer claims (recoverable only from a $300,000 dealer bond).
Multiple farmers/claimants (Christensen, the Herians, Donnelly Trust, Raabe, TTK, Gansebom, others) disputed PSC classifications: whether they were warehouse claimants (owners/depositors/storers or qualified check holders) or dealer claimants, and whether PSP should adjudicate fraud-based equitable relief (rescission/constructive trust).
Key factual disputes: (1) whether delayed-price or other contracts transferred title before PSC closure; (2) whether in‑store transfers occurred for direct‑delivery grain; (3) whether certain checks were "issued" (delivered) within five business days before closure; (4) whether a $600,000 transaction from Uecker was a secured loan or a dealer claim.
PSC denied equitable relief (fraud, rescission, constructive trust) as beyond its statutory authority, classified many claimants as dealer claimants or denied qualified‑check status; appeal followed to Nebraska Supreme Court.

Issues

Issue	Plaintiff's Argument	Defendant's Argument	Held
Whether PSC had jurisdiction to decide fraud-based equitable claims (rescission, constructive trust)	Claimants (Christensen, Herians, Gansebom) urged PSC to adjudicate fraud and rescission as part of claims hearing	PSC: Grain Warehouse/Dealer Acts provide limited statutory claim‑determination; equitable remedies reserved to courts	PSC lacked jurisdiction to grant equitable relief; Supreme Court affirmed PSC’s refusal to decide fraud/rescission/constructive trust claims
Whether delayed‑price contract signed by Christensen transferred title (warehouse claim vs. dealer claim)	Christensen: he was fraudulently induced / did not intend to transfer title; contract lacked price term, so no meeting of minds	PSC: contract is written, unambiguous and transfers title upon execution	Contract was unambiguous and enforceable; title transferred; Christensen not a warehouse claimant; PSC decision affirmed
Whether in‑store transfer occurred for the Herians’ direct‑delivered grain (warehouse claim)	Herians: despite no formal in‑store transfer notice, facts show a postdirect delivery storage position → entitled to warehouse priority	PSC: absence of formal in‑store transfer notice is dispositive; classified claim as dealer claim and denied recovery	Formal notice is prima facie but not exclusive; other evidence may prove an in‑store transfer; Supreme Court reversed and held Herians may recover as warehouse claimants
When a check is "issued" under §88‑530 for qualified check‑holder status	Claimants with checks (Donnelly, TTK, Gansebom, Raabe) argued issuance occurred when PEI wrote/signed checks or surrendered business	PSC: focused on timing of sale/title transfer rather than delivery of checks; treated many as outside 5‑day window	"Issue" means delivery by maker/drawer; Raabe received/delivered check within five business days and qualifies; Donnelly/TTK/Gansebom checks remained undelivered in PEI office at closure and were not issued, so they do not qualify
Standing to challenge classification of Uecker transaction ($600,000)	Cross‑appellants (Donnelly, Raabe, TTK, Gansebom) argued Uecker’s transaction was a secured loan (not dealer claim) and challenged its classification	PSC: only parties with an interest in the dealer bond may challenge dealer‑claim allocations	Appellants lacked standing to contest Uecker classification because they had no cognizable interest in the dealer bond; challenge dismissed

Key Cases Cited

In re Claims Against Atlanta Elevator, Inc., 268 Neb. 598, 685 N.W.2d 477 (2004) (establishes temporal/physical test for warehouse claimant status at PSC takeover)
In re Complaint of Fecht, 224 Neb. 752, 401 N.W.2d 470 (1987) (PSC’s regulatory authority over grain warehouses is statutory)
In re Complaint of Fecht, 216 Neb. 535, 344 N.W.2d 636 (1984) (same principle: PSC’s authority over grain warehousemen springs from statute)
In re 2007 Appropriations of Niobrara River Waters, 283 Neb. 629, 820 N.W.2d 44 (2012) (administrative agencies generally lack equitable/judicial powers)
City of Scottsbluff v. Waste Connections of Nebraska, 282 Neb. 848, 809 N.W.2d 725 (2011) (equitable remedies like constructive trusts are judicial functions)