Searching over 5,500,000 cases.


searching
Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.

Bayer CropScience, LLC v. Stearns Bank National Association

United States Court of Appeals, Eighth Circuit

September 20, 2016

Bayer CropScience, LLC; Bayer CropScience, Inc; Bayer AG; Bayer CropScience, NV; Bayer Aventis Cropscience USA Holding, Now known as Starlink Logistics, Inc.; Bayer Corporation; Bayer CropScience Holding, SA; Bayer CropScience, SA; Eagle Lake Rice Dryer; Genetically Modified Rice Common Benefit Qualified Settlement Fund; Golf Rice Milling; Looper Reed & McGraw; Stoneville Pedigreed Seed Company; Texana Rice; Texana Rice Mill; Bayer CropScience, Inc; Bayer CropScience Holding, Inc; Bayer CropScience, AG Plaintiffs
v.
Stearns Bank National Association Defendant-Appellant Amegy Bank National Association Defendant-Appellee

          Submitted: March 15, 2016

         Appeal from United States District Court for the Eastern District of Missouri - St. Louis

          Before WOLLMAN, BENTON, and SHEPHERD, Circuit Judges.

          SHEPHERD, CIRCUIT JUDGE.

         Bayer CropScience ("Bayer") brought this interpleader action to determine its obligations with regards to a settlement reached with Texana Rice Mill and Texana Rice, Inc. (collectively, "Texana"). That settlement came about as a result of lawsuits that arose when Bayer introduced genetically modified rice into the United States commercial long-grain rice supply. The parties in this appeal, Stearns Bank National Association ("Stearns Bank") and Amegy Bank National Association ("Amegy Bank") are both bank creditors of debtor Texana. Texana settled its commercial tort claim against Bayer, and after disbursement of certain amounts, $933, 697.90 remains. Stearns Bank and Amegy Bank claim priority over those funds. The district court found for Amegy Bank, and we reverse that decision and remand this matter to the district court for further consideration.

         I.

         In November 2006, Texana sued Bayer in Texas state court for several claims related to the contamination of the United States rice supply by Bayer's genetically modified rice.[1] Among the damages claimed, Texana alleged the contaminated rice damaged its property "including any uncontaminated rice it purchased, and its plant, equipment, and improvements." The state court action was eventually removed to federal court and made part of an ongoing multi-district litigation. Texana and Bayer reached a settlement for $2, 137, 500, and Bayer made payment into the custody of the Clerk of Court for the United States District Court for the Eastern District of Missouri. After two uncontested disbursements, $933, 697.90 remains.

         Texana owes separate debts to Stearns Bank and Amegy Bank which total an amount in excess of the remaining settlement proceeds. Each bank argues that it has a superior priority interest in the proceeds. A timeline of events is helpful in understanding the parties' arguments.

         September 13, 2002 - Stearns Bank made a $2.65 million loan to Texana. This loan was secured, in part, by a Commercial Security Agreement covering:

All Fixtures
All Chattel Paper, Equipment and General Intangibles (EXCLUDING
INVENTORY AND ACCOUNTS RECEIVABLE)
[including] all the following, whether now owned or hereafter acquired,
whether now existing or hereafter arising, and wherever located:
(A)All accessions, attachments, accessories, tools, parts, supplies, replacements of and additions to any of the collateral described ...

Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.