Friday, May 14, 2010

Time for Walker Farms to Pay Up?

The Andersons grain company has won a $9 million judgment against Walker Farms who defaulted on corn delivery contracts back in 2007.  The suit was filed in Federal Court in Urbana, Illinois.

According to the original complaint filed in Urbana federal court in 2008, the Walkers signed personal guarantees in August 2007 for future delivery of corn and wheat to The Andersons for the 2007 crop year.

In late December 2007, The Andersons officially notified the Walkers that the fall corn contracts had been breached, subsequently canceled, and The Andersons was demanding payment, as set forth in its written contracts, of about $3.6 million. In March, The Andersons officially notified the Walkers of their failure to deliver on the fall wheat contracts as well, and those were also then canceled by The Andersons, which demanded payment of about $1.8 million for the wheat.

When the Walkers didn't make the payments, The Andersons filed suit in April 2008, demanding about $5.5 million against the Walkers, in addition to attorney fees, costs and interest.

No comments: