Conversion of Property Mortgaged to the Government
Frequently, livestock and chattels subject to a recorded lien
the government are sold by commission merchants or auctioneers and
purchased by others. When the government's borrower who owned the
livestock or chattels is impecunious, the client agency may ask
suit be brought against the commission merchant, auctioneer, or
purchaser to recover the value of the property on the theory of
conversion. For the liability of such "converters", see United
Sommerville, 324 F.2d 712 (3d Cir. 1963), cert. denied, 376 U.S.
(1964); United States v. Matthews, 244 F.2d 626 (9th Cir 1957);
States v. Carson, 372 F.2d 429 (6th Cir. 1967); Cassidy Commission
v. United States, 387 F.2d 875 (10th Cir. 1967); United States v.
Livestock Sales Co., 298 F.2d 755 (4th Cir. 1962); Duvall-Wheeler
Livestock Barn v. United States, 415 F.2d 226 (5th Cir. 1969);
States v. Gallatin Livestock Auction, 589 F.2d 353 (8th Cir. 1978).
Sommerville, supra; Mathews, supra; Carson, supra; Cassidy, supra;
United States v. Hext, 444 F.2d 804 (5th Cir. 1971), hold that
for conversion in such circumstances is determinable by federal
than state law. But see United States v. E.W. Savage & Sons, Inc.,
F.2d 305 (8th Cir. 1973).|
[cited in USAM 4-4.440]