September 21, 2021, District of Delaware – Plaintiff Garrett Herden, a farmer residing in the state of Montana, sues Debtor Defendant Pipeline Foods LLC, Cooperative Rabobank U.A., and many others, seeking a declaratory judgment determining the validity, priority, and extent of Plaintiff’s state statutory lien.
Allegedly, Plaintiff made certain deliveries to the Debtor-Defendant and did not receive any payment in exchange. Plaintiff claims that he holds a senior, first-position, valid, fully-perfected, and enforceable receipt holders lien against his crops and any grain inventory according to N.D.C.C. § 60-02-25.1. Further, Plaintiff alleges that his valid and enforceable receipt holders lien is superior to any lien or security interest that the defendants have asserted or may assert.
Plaintiff also brought reclamation of the property, turnover of property, an accounting, imposition of constructive trust claims against the defendants. Plaintiff argues that Pipeline was insolvent at the time it received the unpaid deliveries and is thus entitled to the immediate return of those deliveries under Section 546(c) of the Bankruptcy Code.