Prairie Sun Bank-Appleton f/k/a Prairie State Bank, Appellant, vs. Vivian Boerboom, Respondent.
Annotate this CaseThis opinion will be unpublished and
may not be cited except as provided by
Minn. Stat. § 480 A. 08, subd. 3 (2004).
STATE OF MINNESOTA
IN COURT OF APPEALS
A05-786
Prairie Sun Bank-Appleton
f/k/a Prairie State Bank,
Appellant,
vs.
Vivian Boerboom,
Respondent.
Filed January 3, 2006
Affirmed
Wright, Judge
Lyon County District Court
File No. C0-05-34
Douglas Kluver, P.O. Box 219, Montevideo, MN 56265 (for appellant)
Joseph Wentzell, 2855 Anthony Lane South, Suite 200, St. Anthony, MN 55418 (for respondent)
Considered and decided by Klaphake, Presiding Judge; Stoneburner, Judge; and Wright, Judge.
U N P U B L I S H E D O P I N I O N
WRIGHT, Judge
FACTSIn May 2002, Scott Boerboom filed for bankruptcy. Four months later, Prairie Sun filed a complaint in United States Bankruptcy Court for the District of Minnesota, claiming fraud and conversion against Scott Boerboom. In December 2003, Scott Boerboom and Prairie Sun entered into a settlement agreement that satisfied in full Scott Boerboom's debt to Prairie Sun for $20,000.
In February 2004, Prairie Sun wrote a letter to Vivian Boerboom requesting her to relinquish the funds from the 2001 sale of Scott Boerboom's grain. When she declined to do so, Prairie Sun filed a complaint against her, claiming conversion, negligence, and unjust enrichment (money had and received). Prairie Sun moved for summary judgment on all issues in December 2004. Vivian Boerboom filed an answer and a cross-motion for summary judgment. On February 22, 2005, the district court granted summary judgment for Vivian Boerboom. This appeal by Prairie Sun followed.
D E C I S I O NIn Farmers State Bank, a grain elevator bought grain on which there was a security interest, paid half of the proceeds to the farmer, and accepted the other half in payment of a debt. 457 N.W.2d at 764. Vivian Boerboom is in the same position as the grain elevator in Farmers State Bank in that she received proceeds from a conversion in satisfaction of a debt. Vivian Boerboom is thus subject to the same rule of law as the grain elevator in Farmers State Bank. Prairie Sun's settlement with Scott Boerboom extinguishes its conversion claim against Vivian Boerboom. Prairie Sun admits that the Farmers State Bank rule applies and that the grain elevators in this case are immune from liability by virtue of its settlement with Scott Boerboom. But Prairie Sun argues that Vivian Boerboom remains liable because of her fraud and collusion with her son. As addressed above, however, the record offers no factual support for this contention.
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