Timmer v. Gray

395 N.W.2d 477 (1986)

Purchase the Printed Copy at bsmsphd.com

Nature of the Case

To access this section all you need to do is click here and register.

Facts

Heaton owned two farming discs. Heaton last used the discs in 1982 and left them in disrepair on land he rented that year from Tom Glowack. In 1984, the Farmers Home Administration (FmHA) acquired legal title to the discs pursuant to a security agreement between the FmHA and Heaton. The FmHA acquired possession of the discs when Heaton filed bankruptcy. The agency left the discs on the land rented by Heaton. At this time, Tom Glowack, the landowner, permitted D, a neighboring farmer, to take possession of the discs. During 1984, D arranged with Maggert (D) to have the discs repaired. Maggert (D) performed $857 worth of repairs on the discs but did not receive any compensation from D. P purchased the discs from the FmHA for $75. P nor FmHA had any idea of what Maggert (D) was doing. At the time of the sale, D possessed a fully repaired disc, and Maggert (D) still had possession of the other disc. P sued for replevin and conversion. Maggert (D) counterclaimed to recover the cost of his repair work. The court ruled that Ps were the rightful owners subject to an equitable lien in favor of Maggert (D). Ps appealed.