Oyens Feed & Supply, Inc. v. Primebank
2011 Iowa Sup. LEXIS 109
| Iowa | 2011Background
- Hog producer Crooked Creek bankruptcy with two competing liens on hogs proceeds.
- Primebank holds a perfected Article 9 security interest in hogs; Oyens Feed has a perfected agricultural supply dealer lien under 570A.5(3).
- Hogs purchased on credit from Oyens Feed to fatten livestock; sale yields proceeds insufficient to satisfy both liens.
- Question certified by federal court: whether 570A.5(3) superpriority is subject to 570A.2(3) certified-request defense or independent.
- Iowa legislature enacted 570A during the 1980s farm crisis to encourage credit sales by dealers while protecting lenders through a certified-request regime.
- Court holds 570A.5(3) superpriority is independent of 570A.2(3) and Oyens Feed does not need to comply with certified request before asserting superpriority.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Does 570A.5(3) superpriority depend on 570A.2(3) certified request defense? | Primebank argues affirmative defense applies to all subsections. | Oyens Feed argues 570A.5(3) independent of 570A.2(3). | Yes; 570A.5(3) operates independently. |
| Should the certified-request defense apply to the livestock feed superpriority? | Primebank contends defense applies to all subsections. | Oyens Feed argues not applicable to 570A.5(3). | Not applicable to 570A.5(3). |
| Is 570A.5(3) a specific rule that controls over general 570A.5(1)-(2)? | Bank argues integration with 570A.2(3) and general rules. | Feed dealers targeted by specific 570A.5(3) provision. | Yes; specific 570A.5(3) prevails. |
Key Cases Cited
- Wilkin Elevator v. Bennett State Bank, 522 N.W.2d 57 (Iowa 1994) (footnote suggested certification issue; not dispositive)
- Boesen v. Estate of Boesen, 805 N.W.2d 802 (Iowa 2011) (selective inclusion of language governs interpretation)
- Russello v. United States, 464 U.S. 16 (U.S. 1983) (where Congress omits language in one section, intentional disparity presumed)
- Goergen v. State Tax Comm’n, 165 N.W.2d 782 (Iowa 1969) (conflict between specific and general statutes controls)