IN RE T.H. RICHARDS PROCESSING CO.

Nos. 88-15318 to 88-15320.

910 F.2d 639 (1990)

In re T.H. RICHARDS PROCESSING COMPANY, Debtor. (Three Cases) ALVERNAZ FARMS, INC.; Dennis Bastiao, doing business as Bastiao Farms; Robert Borchard & Sons; Dettling Farms, Inc., Richard Dettling, Gary Dettling; Mike Dresick, doing business as D & H Farms, Inc.; Fred & Lloyd Durst, doing business as Durst Bros.; Galindo Farms; Holdener Farms, Inc.; Edgar Jane Farms, Inc.; J & R Kalsfbeek, Inc.; Denny Kidwell; Ard K. Kozono; Matsumura, Inc.; George Morita, Nishikawa Farms, Inc., Rosa Farms, Williams Schoeningh, Hiroshi Tabata, M. Wilbur, Jr., Yosh Yamato, dba Yamco Farms, Newhall Land & Farming Co., Plaintiffs-Appellants, v. BANK OF CALIFORNIA, Defendant-Appellee. Lloyd M. RIVES; Thomas C. Howe; John Goelet, as administrators with the will annexed of the Estate of Whitney Warren, Deceased, Plaintiffs-Appellants, v. HARRIS TRUST AND SAVINGS BANK; Security Pacific National Bank; Bank of California, Defendants-Appellees. CALIFORNIA CANNING PEAR ASSOCIATION; All State Packers, Inc.; California Bartlett Packers; A. Russell Gallaway, Jr.; G.C. Johnson & Sons; Ard K. Kozono; Naumes, Inc.; Runyon & Dorsey Orchards, Salisbury & Johnson, Scott's Valley Fruit Exchange, Fong Shee & Sons, Lloyd M. Rives, Thomas C. Howe and John Goelet, as administrators with the will annexed of the Estate of Whitney Warren, Deceased, Plaintiffs-Appellants, v. HARRIS TRUST AND SAVINGS BANK; Security Pacific National Bank; Bank of California, Defendants-Appellees.

United States Court of Appeals, Ninth Circuit.

Decided August 8, 1990.


Attorney(s) appearing for the Case

William J. Bush, Hanson, Bridgett, Marcus, Vlahos & Rudy, San Francisco, Cal., for plaintiffs-appellants.

Jon Craig Gilliland, Murphy, Weir & Butler, San Francisco, Cal., for defendants-appellees.

Before NORRIS, THOMPSON and O'SCANNLAIN, Circuit Judges.


O'SCANNLAIN, Circuit Judge:

In this complex bankruptcy case, we examine the intricacies of California's agricultural producer's lien. The crucial question is whether a grower, merely by agreeing with a processor to a deferred payment for its produce, releases its lien as a matter of law. We conclude that such lien is not so released, and we therefore reverse the order of the district court which concluded otherwise.

I

Appellants are farmers (collectively...

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