International Harvester Co. v. Glendenning

Don Glendenning (defendant), a former International Harvester dealer and salesman turned farmer and equipment trader, bought three tractors worth about $22,500 from another International Harvester dealer for $16,000 cash. The paperwork he signed falsely stated he'd also traded in four other tractors worth $8,700; Glendenning admitted he traded in nothing, that he understood International Harvester's floor-plan financing and security interest arrangement with dealers, and that falsifying the documents was likely to mislead International Harvester and other creditors — yet when an International Harvester representative called to verify the deal, he lied and confirmed the false trade-in. International Harvester Company and International Harvester Credit (International) (plaintiffs) sued Glendenning for wrongful conversion; Glendenning argued he was a protected buyer in the ordinary course of business, the jury agreed, and International appealed.