Ronald L. Comes

McGrath North is proud to announce that it has achieved significant recognition in the latest editions of both The Best Lawyers in America® and Best Lawyers: Ones to Watch® in America. In the 31st edition of The Best Lawyers in America®, 45 of our attorneys have been honored across 60 distinct practice areas, showcasing the firm’s deep expertise and commitment to delivering exceptional legal services.  

In 2010 we reported on an unfavorable decision for secured lenders to livestock producers in Iowa issued by the Iowa District Court for Sioux County, Doon Elevator Company v. American State Bank, Case No. LACV022572 (the “Doon Decision”). The Doon Decision allowed an elevator that supplied feed to a hog producer to prime a lender’s prior perfected security interest in the producer’s hogs and their proceeds. The Iowa District Court ruled in favor of the feed supplier despite the fact that the feed supplier had not complied with the notice to prior secured creditor requirements contained in I.C.A. §570A.2(3). We warned that the Doon reasoning, if eventually accepted by the Iowa Supreme Court, could have serious consequences to lenders who provide secured financing to Iowa livestock producers.  

Lenders engaged in agricultural lending to Iowa livestock producers need to be aware of a recent unpublished decision of the Iowa District Court for Sioux County, Doon Elevator Company v. American State Bank, Case No. LACV022572 (the “Doon Decision”).  The Doon Decision involved the efforts of an elevator that supplied feed to a hog producer to prime a lender’s prior perfected security interest in the producer’s hogs and their proceeds.  The Iowa District Court ruled in favor of the feed supplier despite the fact that the feed supplier had not complied with the notice requirements in I.C.A. §570A.2(3).  As noted below, although Doon is unpublished, and its reasoning is questionable, it nevertheless has the potential to seriously impact lenders who finance Iowa livestock producers.