Love v. US
| Decision Date | 02 February 1994 |
| Docket Number | No. CV-84-167-GF.,CV-84-167-GF. |
| Citation | 844 F. Supp. 616 |
| Parties | Clinton W. LOVE, Sr., and Rose Mary Love, husband and wife, Plaintiffs, v. UNITED STATES of America, United States Department of Agriculture, Farmers Home Administration, Philip A. Young, Claude Hargrove, Arthur E. Lund, Theodor L. Hebnes, Roger Meredith, Rodger VanValkenburg, Dale Gilbert, Jim Walker, Stanley Faught and Gilbert L. Anderson, Defendants. |
| Court | U.S. District Court — District of Montana |
COPYRIGHT MATERIAL OMITTED
Robert M. Kampfer, Kampfer Law Office, Great Falls, MT, Paul J. Petit, Petit Law Office, Missoula, MT, for Clinton W. Love, Sr., Rose Mary Love.
Clinton W. Love, Sr., pro se.
Rose Mary Love, pro se.
George F. Darragh, Jr., Office of the U.S. Atty., Great Falls, MT, Elizabeth A. Strange, Ned W. Greenberg, U.S. Dept. of Justice, Washington, DC, for U.S. Dept. of Agriculture, Farmers Home Admin.
George F. Darragh, Jr., Office of U.S. Atty., Great Falls, MT, Elizabeth A. Strange, U.S. Dept. of Justice, Washington, DC, for remaining defendants.
George F. Darragh, Jr., Office of the U.S. Atty., Great Falls, MT, for Roger Meredith.
FINDINGS OF FACT, and CONCLUSIONS OF LAW
The plaintiffs, Clinton W. Love, Sr. and Rose Mary Love, instituted the present action against the United States of America, acting through the Farmers Home Administration ("FmHA"), seeking to recover monetary damages under the Federal Tort Claims Act ("FTCA"), 28 U.S.C. §§ 1346(b), 2671-2680.1 The matter came on for trial before the court, the Honorable Paul G. Hatfield presiding, sitting without a jury, on the 8th day of March, 1993. Mr. Robert M. Kampfer and Mr. Paul J. Petit appeared as counsel on behalf of the Loves. Ms. Elizabeth A. Strange and Mr. Ned W. Greenberg appeared as counsel for the defendant, United States of America. The court, having heard and considered the testimony and evidence presented by the respective parties, enters the present findings of fact and conclusions of law in satisfaction of Fed.R.Civ.P. 52(a).
Based upon the testimony and evidence presented, I find it true that:
1. The Consolidated Farm and Rural Development Act ("CFRDA"), 7 U.S.C. §§ 1921, et seq., authorized the Secretary of Agriculture to make and insure loans to farmers and ranchers in the United States, subject to the conditions set forth in the statute and regulations promulgated thereunder.
2. The Farmers Home Administration ("FmHA"), as an agency of the United States Department of Agriculture, was charged with the responsibility of administering loans under the CFRDA.
3. Prior to 1984, the Loves obtained eight agricultural loans under either the CFRDA or 7 U.S.C.Prec. § 1961 Note. The loans were secured by various real estate mortgages, security agreements, motor vehicle liens and financing statements executed in favor of the FmHA.
4. As of January, 1984, the Loves had an outstanding loan balance with the FmHA in excess of one million two hundred thousand dollars, including principal and interest.
5. As of June 5, 1984, the Loves had defaulted on all eight agricultural loans. In addition, the Loves had defaulted on a Contract for Deed to purchase certain real property from Jack Sharp, hereinafter referred to as the "Sharp property," as well as a secured loan from the First Security Bank of Malta ("Bank of Malta").
6. During the pertinent time hereto, the Loves were members of a nationwide class certified by the district court in Coleman v. Block, 580 F.Supp. 192 (D.N.D.1983). The class included:
all persons who have obtained a farmer program loan from the Farmers Home Administration, and who are or may be eligible to obtain a farmer program loan from the Farmers Home Administration, and whose loans are or will be administered in the Farmers Home Administration offices located throughout the United States.
7. On November 21, 1983, the Loves filed a voluntary petition in bankruptcy, pursuant to Chapter 11, Title 11 of the United States Code, with the United States Bankruptcy Court for the District of Montana.
8. On April 6, 1984, the FmHa moved the bankruptcy court for an order lifting the automatic stay imposed by 11 U.S.C. § 362, so that it could "take such action as is necessary to protect its security interest in all real and personal property of the defendant debtors."
9. On June 5, 1984, the bankruptcy court held a hearing on the FmHA's motion to lift the automatic stay in the Loves' bankruptcy proceeding, as well as similar motions filed on behalf of Jack Sharp and the Bank of Malta.
10. On June 8, 1984, the bankruptcy court entered an order lifting the automatic stay as to the Bank of Malta. Accordingly, the Bank of Malta proceeded to repossess certain sheep owned by the Loves and in which the Bank held a security interest.
11. On June 15, 1984, the bankruptcy court entered an order lifting the automatic stay as to Jack Sharp. Sharp proceeded to foreclose his interest in the Sharp property, i.e., closing the escrow account, recording the quitclaim deed from the Loves, and taking possession of the property.
12. On June 25, 1984, the bankruptcy court entered an order granting the FmHA's motion to lift the automatic stay and directed the Loves turn over the FmHA's secured collateral on or before June 30, 1984. The bankruptcy court's order also authorized the FmHA to repossess its secured collateral in the event the Loves did not comply with the bankruptcy court's order.
That should debtors not comply with this order the Court hereby directs the United States Marshal for the District of Montana to accompany and assist FmHA in the repossession of its secured collateral.
13. The record reveals the Loves did not appeal the bankruptcy court's June 25, 1984, order, nor did they request the court amend the order to extend the deadline for turning over the secured collateral.
14. The Loves failed to turn over any collateral to the FmHA by the June 30, 1984, deadline established by the bankruptcy court.
15. On June 25, 1984, Jack Sharp, through his attorney, sent the Loves a letter requesting they remove livestock and machinery that remained on the Sharp property. The letter provided, inter alia:
It has now come to our attention that Farmers' Home Administration will have all of its security removed by July 1, 1984. We intend to lease said premises as of that date. Accordingly, you should also have any remaining property removed by that date.
16. The Sharp property was leased to Robert Wolsted effective July 1, 1984. Wolsted advised Sharp he did not want to move onto the property until it was clear of the Loves' livestock and machinery. Consequently, Sharp, through his attorney, contacted the FmHA and threatened to assess fees, as of July 1, 1984, for the Loves' chattel property left on the land.
17. On July 5, 1984, Claude Hargrove, the FmHA's County Supervisor, visited the Sharp property and confirmed the Loves had abandoned a number of "mixed" pigs, i.e., pigs of different sizes and ages, on the property, as well as certain machinery in which FmHA held a security interest. Hargrove further testified the pigs were in poor condition, were not being fed or cared for properly, and were in danger of perishing.
18. As a result, the FmHA, on July 6, 1984, took possession of approximately 115 pigs which had been abandoned on the Sharp property. Hargrove sold the pigs "as is" to a farmer in the Browning, Montana area, Joe Evans, for $3,146.40 (17,480 pounds at 18¢ per pound), less $306 for the cost of trucking. The net proceeds of $2,840.40 were credited to the Loves' outstanding debt owed to the FmHA.
19. Hargrove testified he sold the pigs to Evans because the only available public auction for pigs was scheduled for July 12, 1984, in Kalispel, Montana, which would have entailed additional transport and feeding expenses. Hargrove further testified mixed pigs bring a lower market price than pigs of consistent age and weight and, in addition, the market price for pigs is susceptible to dramatic reduction if the pigs are in poor condition.
20. On July 10, 1984, the United States District Court for the District of Montana entered an order directing the United States Marshal for the District of Montana to accompany and assist the FmHA in repossessing its secured collateral.
21. On July 11, 1984, the FmHA, with the assistance of the United States Marshal Service, repossessed three grain augers, a feed grinder and a gyro mower which had been abandoned on the Sharp property.
22. The machinery was taken directly to Service Supply Company, a farm implement dealership in Cut Bank, Montana. It is undisputed that Clinton Love subsequently observed the machinery on Service Supply's sales lot and was advised the machinery was for sale.
23. Service Supply ultimately sold the feed grinder at a private sale. The grinder, which had an appraised value of $2,000, was sold for $3,000, less a seven percent sales commission of $210. The net proceeds of $2,790 were credited to the Loves' outstanding debt owed to the FmHA. The feed grinder was the only piece of machinery Service Supply was able to sell by private sale.
24. On or about February 12, 1987, a notice was sent, via certified mail, to the Loves' last known address, informing them that a public auction of certain repossessed farm machinery would be held at 1:00 P.M. on February 24, 1987, at Service Supply in Cut Bank, Montana.
25. Notices indicating the time and place of the public auction, together with a description of the farm machinery, were posted in the farm implement dealerships in Cut Bank, as well as in the local FmHA office, the courthouse and in various local banks. In addition, an advertisement was published in a local newspaper.
26. Clinton Love testified he received actual notice of the auction through reading the advertisement in the...
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Love v. U.S., 94-35346
...immunity. After a bench trial on the FTCA claim, the district court awarded judgment in favor of the government. Love v. United States, 844 F.Supp. 616 (D.Mont.1994). The Loves appeal. We have jurisdiction under 28 U.S.C. Sec. 1291, and we affirm. A. FACTS The Loves are Montana farmers who ......