Lone Star Moves for Summary Judgment Alleging Superior Lien
September 17, 2021, Northern District of Texas – Plaintiff Lone Star State Bank of West Texas (“Lone Star”) for the bankruptcy estate of Waggoner Cattle, LLC et al moves the Court to grant summary judgment in its favor and against Defendant, Rabo AgriFinance LLC, f/k/a Rabo Agrifinance, Inc. (“Rabo”) under Rule 56 of the Federal Rules of Civil Procedure, Rule 7056 of the Federal Rules of Bankruptcy Procedure, and Local Bankruptcy Rule 7056-1.
Lone Star had filed a complaint against Rabo to avoid and recover payments worth $3,004,041.21 as “preference transfers” and “fraudulent conveyances” under Sections 547 and 548 of the Bankruptcy Code.
In essence, Lone Star and Rabo each claim the other “wrongly received” collateral to which they held the first lien. Essentially, the main issue revolves around – who held a superior lien on which category of collateral. In its motion for summary judgment, Lonestar alleges that it initially had the first lien in all the Waggoner Entities’ cattle and, his priority lien secured its entire debt. Thus, Lonestar prays that the Court dismisses Defendant’s counterclaims for “fraud by non-disclosure”; “conversion”, “unjust enrichment”, “breach of contract”, etc.