USA v. Lewis et al

Filing 12

JUDGMENT in favor of USA against Lewis & Son Rice Processing Corporation, Doris J Lewis, Ephron H Lewis in the principal sum of $ 645,518.35, plus interest in the sum of $126,132.51. Signed by Judge Susan Webber Wright on 6/24/11. (kpr)

IN THE UNITED STATES DISTRICT COURT
EASTERN DISTRICT OF ARKANSAS
HELENA DIVISION
UNITED STATES OF AMERICA
v.

PLAINTIFF
No. 2:10CV00105 SWW

EPHRON H. LEWIS AND DORIS J. LEWIS;
LEWIS & SON RICE PROCESSING
CORPORATION, An Arkansas Corporation;
ENTERPRISE CORPORATION OF THE
DELTA; ARKANSAS LAND AND FARM
DEVELOPMENT CORPORATION; and
TEEL MARKETING SERVICES, INC.

DEFENDANTS

JUDGMENT
Pursuant to the Court’s order granting plaintiff’s motion for summary judgment
(Doc. 11), it is hereby, ORDERED, DECREED AND ADJUDGED:
1. The Court has jurisdiction over the parties and over the property which is the
subject of this cause of action.
2. There is due and owing on the promissory notes of Ephron H. Lewis and Doris
J. Lewis payable to the United States of America, U.S. Department of Agriculture, Rural
Development, the total principal sum of $645,518.35, plus interest in the sum of
$126,132.51, accrued to October 28, 2010, and thereafter at the daily rate of $70.7417 to
date of this judgment and thereafter at the statutory rate pursuant to 28 U.S.C. §1961, plus
any additional advances and recoverable charges made during the pendency of this action
for protection and maintenance of the subject property, and the costs of this action. A
total balance of $771,650.86 is due as of 10/28/10. Plaintiff United States of America, is
hereby awarded judgment in personam for the above-mentioned sums against the
defendants Ephron H. Lewis, Doris J. Lewis and Lewis and Son Rice Processing
Corporation, jointly and severally, including any deficiency remaining after sale of the

subject real and personal property.
3. The above-described indebtedness due and owing to the plaintiff is secured by a
mortgage recorded as follows:
MORTGAGE
April 16, 2003

RECORDATION
April 16, 2003

BOOK AND PAGE
Book 415, Page 4656, Cross Co.

Plaintiff's mortgage constitutes a good and valid mortgage lien, which is paramount and
superior to all right, title, claim, interest, estate, equity or statutory right of redemption,
dower, curtesy and homestead of the defendants herein, and each of them, in and to the
following described real property in Cross County, Arkansas:
TRACT 1:
Part of the South Half (S½) of the Southeast Quarter (SE¼) of the Northeast
Quarter (NE¼) of Section Ten (10), Township Six (6) North, Range Five
(5) East of the Fifth Principle Meridian and more particularly described as
follows: Beginning at the Southeast Corner of the Northeast Quarter (NE¼)
of Section Ten (10), Township Six (6) North, Range Five (5) East; thence
North 89 degrees 59 minutes 21 seconds West, 316.80 feet along the South
line of the Northeast Quarter (NE¼) to an iron pin; thence North 00 degrees
22 minutes 00 seconds West, 275.00 feet to an iron pin; thence South 89
degrees 59 minutes 21 seconds East, 316.80 feet to an iron pin; thence
South 00 degrees 22 minutes 11 seconds East, 275.00 feet along the East
line of the Northeast Quarter (NE¼) to the point of beginning, containing
2.0 acres more or less.
TRACT 2:
Part of the East Half (E½) of the East Half (E½) of Section Ten (10) and
Part of the West Half (W½) of the West Half (W½) of Section Eleven (11),
all in Township Six (6) North, Range Five (5) East, Cross County,
Arkansas, more particularly described as follows:
Beginning at the Southeast corner of the Northeast Quarter (NE¼) of
Section Ten (10), and being marked by a Found Iron Pin; thence South 89
degrees 59 minutes 52 seconds West a distance of 316.78 feet to a Found
Iron Pin; thence South 00 degrees 24 minutes 07 seconds East a distance of
45.10 feet to a point; thence North 89 degrees 59 minutes 52 seconds East a
distance of 366.77 feet to a point; thence North 00 degrees 23 minutes 19
seconds West a distance of 319.93 feet to a point; thence North 89 degrees
59 minutes 21 seconds West a distance of 31.66 feet to a point; thence
North 68 degrees 37 minutes 22 seconds West a distance of 164.14 feet to a
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point; thence North 02 degrees 01 minutes 56 seconds West a distance of
193.96 feet to a point; thence North 04 degrees 22 minutes 15 seconds West
a distance of 45.76 feet to a point; thence North 10 degrees 33 minutes 48
seconds West a distance of 198.95 feet to a point on the Centerline of an
existing road; thence South 73 degrees 09 minutes 19 seconds West along
the said centerline, a distance of 34.56 feet to a point; thence South 12
degrees 20 minutes 46 seconds East a distance of 192.50 feet to a point;
thence South 02 degrees 34 minutes 28 seconds East a distance of 177.60
feet to a point; thence South 01 degrees 04 minutes 56 seconds East a
distance of 46.51 feet to a point; thence South 03 degrees 40 minutes 02
seconds West a distance of 73.00 feet to a point; thence South 89 degrees
59 minutes 21 seconds East a distance of 169.08 feet to a point; thence
South 00 degrees 23 minutes 19 seconds East a distance of 274.84 feet to
the Point of Beginning, and containing 1.15 acres, more or less. LESS AND
EXCEPT all easements and rights-of-way of record.
together with all improvements and appurtenances thereon.
4.

Plaintiff’s mortgage recorded on 4/16/2003 as Book 415, Page 4656

constitutes a first lien against the above described property, which is paramount and
superior to all right, title, claim, interest, estate, equity or statutory right of redemption,
dower, curtesy, homestead, of all of the defendants herein in and to the above described
real property in Cross County, Arkansas.
5.

Defendant Enterprise Corporation of the Delta (ECD) holds a second lien

against the above-described real property by virtue of a mortgage recorded on 4/16/2003
in Book 415 at page 4662 in the real estate records of Cross County, Arkansas. ECD’s
mortgage is hereby foreclosed, and ECD shall be paid from the foreclosure sale proceeds
in accordance with its second lien priority.
6.

If the judgment hereby awarded to the United States of America is not paid

within 10 days from this date, the United States Marshal is directed to sell the abovedescribed property at public auction to the highest bidder for cash, or on a credit of 60
days, at the South front door of the Cross County Courthouse, Wynne, Arkansas. The
date and time of such sale shall be fixed by the Marshal. If purchased on credit, payment
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of the purchase price shall be secured by one of the following methods, at the purchaser's
option: furnish a corporate surety bond, or furnish a letter of credit from a financial
institution, or post a 10% cash down payment. The corporate surety bond and letter of
credit shall be in the amount of the purchase price, plus interest at the rate of 10% per
annum from date of sale, and shall be subject to the approval of the U. S. Marshal. The
10% cash down payment shall be forfeited in the event of failure to pay for the property
within 60 days, in which event the Marshal shall resell the property. In the event of a
cash down payment, the purchaser shall pay interest on the balance of the purchase price
at the rate of 10% per annum from date of sale. A lien against the property shall be
retained to further secure payment of the purchase money. The property shall be sold
subject to any unpaid property taxes. If the plaintiff shall become the purchaser at such
sale for a sum equal to or less than the indebtedness owed to plaintiff as of the date of
sale, it may credit its bid against the amount of the debt and such credit shall be an
extinguishment of the debt to the extent of such credit. The Marshal shall give notice of
the sale as required by 28 U.S.C. § 2002, and shall forthwith report the result of the sale
to the Court.
7. Upon the sale of the above-described real property, all right, title, claim,
interest, estate and equity or statutory right of redemption, and all rights of homestead,
curtesy and dower, of all parties in and to said property, and every part thereof, shall from
that date be foreclosed and forever barred.
8. The purchaser at said sale shall be given possession upon demand and the Clerk
of this Court is hereby authorized and directed to issue writs of assistance to the United
States Marshal for the Eastern District of Arkansas, who will proceed to place the
purchaser in possession of said property.
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9. The sales proceeds, after expenses of sale shall be paid and distributed to the
United States of America, Rural Business-Cooperative Service, a division of Rural
Development, an agency within the United States Department of Agriculture, to the
extent of the judgment herein awarded to plaintiff. Any surplus remaining shall be paid
on the second mortgage lien of defendant ECD.
10.

The above described indebtedness owed to the plaintiff is further secured by

a security agreement dated 4/16/2003 executed by defendant Lewis and Son Rice
Processing Corporation, Financing Statements filed with the Circuit Clerk and Recorder
of Cross County, Arkansas, and with the Arkansas Secretary of State, on 4/16/03 and
5/5/03, respectively, and continuations filed with the Circuit Clerk and Recorder of Cross
County on 5/2/08 and with the Arkansas Secretary of State on 4/9/08. Plaintiff holds a
first lien security interest in the following machinery and equipment of Lewis and Son
Rice Processing Corporation, together with all replacements, substitutions and additions:
Quantity

Kind

Manufacturer

Size/Type

Condition

Serial No.

1

Cleaner

Crippen

VX-254 RH

1

Separator

Ideal

3036

1

Separator

Paddy

No. 19330040
No. 2-930041

1

Dump

29706

Scale
1

Color

5950113

Master
1

Conveyo

029707

r Belt

5

Quantity

Kind

1

Manufacturer

Size/Type

Dump

Condition

Serial No.
4145

Scale
1

Destoner

1

Crippen

Sheller

Model S-43
Model CC

800774

B 100
1

Sheller

Model CC

800604

B 100
1

Polisher

27139

1

Polisher

27138

1

Separator

Ideal

Model No.

3035

S-12-ACPF
1

Metal
Detector

1

Dust
Collector

8

Elevator
Bagging
Scales
and Belt

3

Grain

7,500

Bins

Bushel

Grain

20,000

Bin

Bushel

1

11.

Magnet

97006
F-1081(319-1),
(319-2),
(319-3),
(319-4)

Defendants Ephron H. Lewis, Doris J. Lewis, Lewis & Son Rice Processing

Corporation, and their employees, representatives and agents, are directed to surrender
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possession, custody and control of the above-described machinery and equipment,
together with all replacements, substitutions and additions, to Rural Development (RD),
U.S. Department of Agriculture (USDA) at a time and place designated by RD, USDA.
The machinery and equipment shall be sold, or otherwise disposed of, by RD, USDA in a
commercially reasonable manner pursuant to the Arkansas Uniform Commercial Code.
The proceeds from such sale or disposition, after expenses, shall be first paid to the
plaintiff, and next, to defendant ECD, which holds a second lien security interest in such
property.
12. The Court retains jurisdiction of this cause for the making of such further
orders as may be necessary to effectuate this judgment.
DATED this 24th day of June, 2011.

/s/Susan Webber Wright
UNITED STATES DISTRICT JUDGE

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