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DAIRY DEPT. v. HARVEY CHEESE, INC.

Civ. No. 9541.

278 N.W.2d 137 (1979)

DAIRY DEPARTMENT of North Dakota, State Department of Agriculture, an Agency of the State of North Dakota, Appellant, v. HARVEY CHEESE, INC., Auto-Owners Insurance Company, National Bank of Harvey, Donald P. Pauly and the Bell Importing Co., a Corporation, also known as Bell Import Co., Nick Demetriou and Does I through Z, Inclusive, Appellees.

Supreme Court of North Dakota.

As Modified April 17, 1979.

Attorney(s) appearing for the Case

John W. Dwyer, Sp. Asst. Atty. Gen., Bismarck, for appellant.

Lamb, Schaefer, McNair & Larson, Fargo, for appellees Harvey Cheese, Inc., and Nat. Bank of Harvey; argued by L. M. Stenehjem, Jr., Fargo.

Pearce, Anderson, Thames & Durick, Bismarck, for appellee Natl. Farmers Organization; argued by Patrick W. Durick, Bismarck.

SAND, Justice.

This case involves the authority of the North Dakota Dairy Department to act as a trustee for the benefit of unpaid dairy producers upon the insolvency of a licensed and bonded dairy processor.1 The dairy department appealed from an order determining the sale of inventory, property, and assets of Harvey Cheese, Inc., exceeded the authority of the dairy department and that the...

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