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Business Associations Keyed to Bainbridge
A. Gay Jenson Farms Co. v. Cargill, Inc.
Citation:309 N.W.2d 285 (Minn.1981)
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Warren Seed & Grain Co. operated a grain elevator and was involved in the purpose of grain from local farmers. Lloyd Hill decided in 1964 to apply for financing from Cargill. Warren and Cargill entered into an agreement which provided that Cargill would loan money for working capital to Warren on open account financing up to a stated limit, which was originally set as $175,000. Under this contract, Warren would receive funds and pay its expenses by issuing drafts drawn on Cargill through Minneapolis bank. Warren’s indebtedness, however, continued to be in excess of its credit line, and Cargill beggan to contact Warren regarding its financial affairs. In 1975, Cargill’s regional office began to keep a daily deposit on Warren. In 1977, Warren ceased operations and it was found to be indebted to Cargill in the amount of $3.6 million. Plaintiffs alleged that Cargill was jointly liable for Warren’s indebtedness as it had acted as principal for the grain elevator.
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