PRUDENTIAL INS. CO. v. BUTTS FARMING ASS'N

Civ. No. 11396.

406 N.W.2d 662 (1987)

The PRUDENTIAL INSURANCE COMPANY OF AMERICA, a corporation, Plaintiff and Appellee, v. BUTTS FARMING ASSOCIATION, a North Dakota corporation, Defendant and Appellant, and Loretta Butts, individually; Richard Butts, individually; Alan Butts, individually, Alan Butts as the Personal Representative of the Estate of Lloyd Butts, deceased; United States of America, acting through the Farmers Home Administration, United States Department of Agriculture, New Rockford, North Dakota; Adobe Oil and Gas Corporation, consolidated into Adobe Resources; First National Bank of Jamestown, now known as Norwest Bank Jamestown; Dover Oil, Inc.; Patrick J. McDonough; Cyrus Copenhaver, and Evelyn Copenhaver, Norman Jessen and Associates, Inc.; Edward J. Meyer; Pan-Canadian Petroleum Company; Sun Oil Company; and Arkla Exploration Company, Defendants.

Supreme Court of North Dakota.

May 28, 1987.


Attorney(s) appearing for the Case

Serkland, Lundberg, Erickson, Marcil & McLean, Fargo, for plaintiff and appellee; argued by Paul F. Richard.

Rosenberg & Espeseth, Bismarck, for defendant and appellant; argued by Ross H. Espeseth.


LEVINE, Justice.

Butts Farming Association (BFA) appeals from a summary judgment granting the Prudential Insurance Company of America (Prudential) foreclosure of a mortgage on real estate owned by BFA. We reverse and remand.

During March 1977 BFA borrowed $1.5 million from Prudential for which it signed a promissory note secured by a real property mortgage on approximately 3,194 acres of farmland. During March 1983 BFA filed for reorganization under Chapter...

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