Summary: The United States of America, plaintiff and interpleader, moved to partially distribute the liquidated proceeds of grain found at the warehouse facilities of defendant Wimbledon Grain Company. The Court granted this motion.

 

Case Name: USA v. Wimbledon Grain Company, et al.

Case Number: A3-02-46

Docket Number: 66

Date Filed: 7/10/02

Nature of Suit: 890

 

IN THE UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF NORTH DAKOTA

SOUTHEASTERN DIVISION

UNITED STATES OF AMERICA,

Plaintiff,

-vs-

WIMBLEDON GRAIN COMPANY; KENNETH HOGGARTH; GERALD HOGGARTH; NORTH DAKOTA  PUBLIC SERVICE COMMISSION; SECURITY STATE BANK; EMPLOYERS MUTUAL CASUALTY COMPANY; ARCHER DANIELS MIDLAND COMPANY; CARGILL, INC.; and ALL CLAIMANTS TO THE LIQUIDATED GRAIN PROCEEDS OF WIMBLEDON GRAIN COMPANY,

Defendants.

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) Civil No. A3-02-46
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) ORDER FOR PARTIAL
) DISTRIBUTION OF RES
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           A hearing was held in this matter on May 31, 2002. An evidentiary hearing was held on June 28, 2002, and a telephonic hearing was held on July 3, 2002. Upon consideration of United States’ Motion for Partial Distribution of Res, and the entire record,

           IT IS ORDERED, that $3,158,150.61, plus approximately $8,200.00 in commodity taxes levied under North Dakota law, shall be distributed as follows:

           1) Distribution shall be made to the holders of the bailment accounts listed in Exhibit A, which is attached to the United States’ Motion and a copy of which is attached to this order. Bailment accounts are the accounts with a dollar value under the “Open A/S Dollars” column on Exhibit A. Distribution shall also be made to the holders of the accounts identified in the attached Exhibit B, which is a list of the accounts with a grain sales contract that was either unsigned, forged, or deemed to be a cash sale. The amount distributed to each class is set forth in the following table:

Class

Description

Amount

I

Cash Sales Contracts (See Exhibit B)

$145,470.10

II

Bailment Accounts (See Exhibit A)

$2,387,971.06

III

Unsigned Sales Contracts (See Exhibit B)

$541,879.03

IV

Forged Sales Contracts (See Exhibit B)

$82,830.42

           2) The amount distributed to the holder of each account identified above shall be an amount equal to the dollar amount identified in Exhibit A or B for the respective account;

           3) The amount paid shall be deemed a partial and advance distribution and not final. This distribution will neither foreclose or cut off the right of any party to this action to interplead or supplement their individual claim against the Res, nor will it exonerate the bond;

           4) The Public Service Commission (PSC) shall perform the administrative functions necessary to accomplish distribution to persons with unpaid cash sales accounts identified on Exhibit B. The Farm Service Agency (FSA) shall perform the administrative functions necessary to accomplish distribution to the holders of the bailment accounts and the accounts with unsigned or forged contracts, as identified on Exhibits A and B;

           5) Checks shall be made payable to the holder of the account, as identified on Exhibits A and B, and lienholder(s) of record. Funds otherwise payable to Hoggarth Brothers, Gerald Hoggarth, or Kenneth Hoggarth shall be set aside and held in an account pending further order of this Court. For the purpose of identifying lienholders, FSA and the PSC may rely on the records of the Wimbledon Grain Company and the Farm Products List prepared and distributed monthly by the North Dakota Secretary of State;

           6) FSA shall use the Res to pay commodity taxes levied under North Dakota law;

           7) Funds for this distribution shall be derived and used as follows:

Source:

Use:

FSA’s Wells Fargo Account in Jamestown, North Dakota

The current balance of this fund is $2,120,124.69. FSA will distribute these funds to the holders of the bailment accounts identified in Exhibit A which is attached to the United States’ Motion and a copy of which is attached to this order. In addition, FSA will use this fund to pay the commodity taxes levied under North Dakota law.

ADM and Cargill Inc. funds on deposit at the Bank of North Dakota

The current balance of this fund is $1,553,517.57. ($831,477.58 from ADM funds and $722,039.99 from Cargill, Inc.) As this fund becomes available to FSA, FSA shall use it to complete distribution to the holders of bailment accounts, as identified in Exhibit A, and to make distribution to the holders of unsigned contracts and forged contracts as identified in Exhibit B. The PSC shall use this fund to make distribution to holders of cash sale contracts, as identified in Exhibit B. All of the ADM funds will be distributed pursuant to this Order. The Cargill, Inc. funds will only be used to the extent necessary to complete distribution pursuant to this order. This Court estimates that not more than $245,000.00 of the Cargill, Inc. funds will be distributed pursuant to this Order.

 

           Dated this ______ day of July, 2002.

 

_________________________
RODNEY S. WEBB, Chief Judge
United States District Court