The fourth lawsuit in grain defaults by Turner Grain Merchandising and other firms has been filed, as six Mississippi farming operations say that they have not been paid for corn they value at more than $1.7 million.
Greenville, Miss., attorney Bradley Hathaway filed the complaint Thursday in the U.S. District Court for Eastern Arkansas. Judge Brian S. Miller has been assigned the case.
It brings to $15.7 million the claims against Turner Grain and related firms. The other lawsuits were filed in August and September in circuit courts in Lee, Lonoke and Monroe counties.
The latest suit also names Turner Grain Inc., Agribusiness Properties LLC, Neauman Coleman and Co., Agripetroleum Sales LLC, Ivory Rice LLC, Brinkley Truck Brokerage LLC, Rice America Inc., Rice Arkansas Inc., Turner North LLC and LJTC LLC.
All of the businesses in the suit list their principal place of business as Brinkley.
Individuals sued are Jason Coleman, Neauman Coleman, Christopher Taylor and 30 "John and Jane Does."
The men are either partners or officers in several of the companies that are defendants.
Plaintiffs are farmers in all cases, except for the Monroe County action for two rice processors in Louisiana.
Harper Ross, one of the six Mississippi farmers, said in an interview last month that he recruited the other five farmers to sell their corn after being contacted by Jason Coleman in late July.
Turner Grain hauled away 310,000 bushels and contracted to pay $5.69 a bushel. Turner Grain delivered the corn to Gavilon, an Omaha, Neb.-based firm, which in turn sold it to Tyson Food, according to Ross' account.
Gavilon's website describes the company as a global system for distribution of feed, food and fuel. It is a subsidiary of Toyko-based Marubeni Corp.
A Gavilon spokesman has said it had met its contractual obligations and owed Turner no money.
The federal court suit, which said it may be amended to add other defendants, states that other purchasers may include Ivory Rice, Agribusiness Properties and Oakley Grain Inc.
North Little Rock-based Oakley Grain, a commodity trader and shipper, filed a motion in federal court on Aug. 19, seeking to establish a court-administered trust to distribute to rightful parties $360,000 it got from buying grain from Turner Grain.
That amount has grown to more than $500,000, according to the suit filed Thursday.
The U.S. Department of Agriculture has given farmers adversely affected by the Turner Grain collapse an extra 90 days to repay federal crop loans. The state's congressional delegation has sponsored legislation to give farmers up to 180 days after the resolution of a bankruptcy by a commodities dealer to repay loans.
No corporate bankruptcy has been sought in the Turner Grain collapse, though Dale Bartlett, president of Turner Grain Merchandising, filed for bankruptcy protection on Sept. 5 under Chapter 12, which is designed to protect family farms. No ruling has been made in that case.
Business on 10/04/2014