- Ag Docket
(defendant claimed that its security interest in debtor’s 2008 table grape crop was superior to plaintiff’s security interest in same crop; in 2007, plaintiff agreed to finance debtor’s 2007 grape crop to be grown in Mexico and took a security interest debtor’s 2007 grape crop and all future crops and proceeds thereof; plaintiff filed financing statement on 1/18/07 in Washington, D.C. pursuant to A.R.S. Sec. 47-9307(C) because Mexico had no filing or registration system at the time; state (AZ) law said that local law where debtor located governs perfection if debtor located in jurisdiction where local law requires information concerning existence of non-possessory security interest to be made in a public filing, recording or registration system as a condition of obtaining priority over a lien creditor; if no such system in place in debtor’s jurisdiction, creditor to file financing statement in Washington, D.C.; defendant advanced funds to debtor to grow 2008 grape crop after searching public registry in Sonora Mexico; under agreement with debtor, under marketing agreements, defendant obligated to market and sell crop that debtor was financing; debtor granted defendant security interest in 2008 crop and proceeds thereof; in May of 2008, defendant marketed debtor’s 2008 crop and collected and retained sale proceeds after plaintiff notified defendant in April of its security interest; plaintiff sued to enforce its security interest in the 2008 crop; amendments to Mexico law in 2009 created a federal registry for recording security interests; court determined that Mexico law did not satisfy requirements of AZ law in 2007 and 2008 and that filing was properly in Washington, D.C.; defendant liable for conversion because plaintiff had right to sales proceeds and was entitled to immediate possession; plaintiff granted attorney fees).
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