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Rabo AgriFinance Inc. Files Suit Against Turner Grain

2 min read

An agriculture finance company has filed a lawsuit against Turner Grain Merchandising Inc. of Brinkley and its executives, alleging breach of contract and saying Turner owes it nearly $1 million. 

It’s the third known lawsuit filed against the Brinkley company. Two groups of farmers filed suit last month.

According to the suit, filed Wednesday in U.S. District Court, Rabo AgriFinance Inc., which provides financing for farmers, ranchers and agribusiness across the country, entered into a credit agreement with Turner Grain on Jan. 2. 

Rabo claims Turner Grain owes it $985,140. It also alleges that Turner Grain’s top executives — President Dale Bartlett and Vice President Jason Coleman — are “jointly and severally liable for the debts incurred on Turner Grain’s account with Rabo” by virtue of their signatures on the credit agreement.

More: View the lawsuit here (PDF).

Rabo, a subsidiary of Rabobank Group, also claims it entered into a security agreement with Turner Grain on Jan. 2, and is now entitled to “the foreclosure of its liens and security interests in the grain currently held by Turner Grain,” in addition to other assets and collateral.

Rabo, which has a principal office in St. Louis, Missouri, is seeking compensatory damages, although an amount was not specified, and costs for attorneys’ fees.

Turner Grain Litigation Stacks Up

This is the third lawsuit filed against Turner Grain since several sources told Arkansas Business last month that the Brinkley company was close to filing for bankruptcy. 

Four farm companies in Lonoke County and eight farmers with fields in Monroe, Phillips and Lee counties have filed suit against Turner Grain, alleging fraud, theft by deception and breach of contract. 

In the meantime, Bruce Oakley Inc. of North Little Rock has filed an interpleader in U.S. District Court in Little Rock asking a judge to decide what to do with $360,000 it owes Turner Grain. A judge has already ordered the Brinkley company, and its related entities, not to sell any assets.

State agriculture officials have put the money at stake in the still-unfolding case between $20 million and $50 million. The FBI is also reported to be investigating Turner Grain.

In recent days, Turner Grain executives have appeared to be readying for lengthy court battles. Bartlett filed individual bankruptcy Sept. 5. The filing identified up to 49 creditors and liabilities between $1 million and $10 million. Coleman, the company’s vice president, has hired a North Little Rock attorney to represent him.

Both have been removed as principals in a related company, Neauman Coleman & Co. LLC of Brinkley, which shares the same address as Turner Grain.

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