Stearns Bank Nat'l Assoc. v. Amegy Bank Nat'l Assoc., No. 15-1967 (8th Cir. 2016)
Annotate this CaseBayer filed an interpleader action to determine its obligations with regards to a settlement reached with Texana that came about as a result of lawsuits that arose when Bayer introduced genetically modified rice into the United States commercial long-grain rice supply. Stearns Bank and Amegy are both bank creditors of Texana. The district court found for Amegy Bank. The court held that the district court erred in determining that Stearns Bank’s foreclosure extinguished its rights to pursue the proceeds of its original collateral; while Stearns Bank does not have an interest in the Settlement Payment as an after-acquired general intangible because that payment arose as proceeds of a commercial tort claim, it does have an interest in the Settlement Payment to the extent the payment is for damage to the original collateral; and the district court will have to determine on remand what part of the sum held in the registry of the court constitutes proceeds of Stearns Bank’s original collateral and what part does not constitute such proceeds. Accordingly, the court reversed and remanded.
Court Description: Shepherd, Author, with Wollman and Benton, Circuit Judges] Civil case - Interpleader Action. Under Texas law, Stearns Bank's foreclosure did not extinguish its rights to pursue proceeds of its original collateral; while Stearns did not have an interest in the settlement payment its debtor received as part of the settlement of the genetically-modified rice litigation as an after-acquired general intangible,it does have an interest in the payment to the extent the payment is for damages to the original collateral; on remand, the district court should determine what part of the sum held in its registry constitutes proceeds of Stearn's original collateral; reversed and remanded for further proceedings. [ September 16, 2016
Some case metadata and case summaries were written with the help of AI, which can produce inaccuracies. You should read the full case before relying on it for legal research purposes.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.