Attorneys involved in a class action lawsuit with Express Grain’s largest creditor are in Greenwood this week to preserve the company’s electronic records.
Three farm operations — Island Farms LLC, Porter Planting Co. and Wyatt Farm Partnership — are suing UMB Bank, alleging that the bank knew of Express Grain’s declining financial condition but kept the company afloat to seize its grain as collateral. Express Grain filed for bankruptcy last year.
The bank has denied the accusations and asked that the case be dismissed. No decision has been rendered on that request.
In a court filing on Monday, UMB announced its own attorneys as well as attorneys with the farmers would be at Express Grain’s oil mill to preserve the company’s electronic records.
This is because of the pending transfer of the oil mill to another company.
UMB, the highest bidder of Express Grain’s Leflore County facilities, chose to exercise its right to transfer its purchase rights.
The oil mill is expected to be transferred to Thoroughbred Agrifuel Holdings LLC on Friday, according to the court filing.
Delta Grain Co., a subsidiary of FSB Companies in Chicago, purchased the Sidon and Minter City grain elevators for an undisclosed sum.
With these moves in mind, attorneys want to get any records that may be of interest in the lawsuit before the transfer is complete.
The announcement said that information actively in use on servers and workstations is expected to be copied. Emails will not be since there have already been copies and downloads made.
Materials that have not been used, such as unopened tablets or servers, will be left for the new purchaser.
UMB, the announcement said, will also store paper documents not needed by the new purchaser.
Attorneys for both sides in the lawsuit will consult with each other on documents that may need to be scanned.
The inspection is for preservation of records only, according to the announcement. “The parties, including their counsel and agents, will not access, review, share, disclose, analyze, or otherwise use any of the Information except to the extent necessary to preserve the Information,” it said.
- Contact Kevin Edwards at 662-581-7233 or kedwards@gwcommonwealth.com
