USA v. Martin et al

Filing 14

DEFAULT JUDGMENT re 13 Motion, in favor of USA against Kevin P Martin in the sum of $144,000.13 as of 8/23/11, with interest thereafter at the rate of $10.38 per day to the date of entry of this Judgment, with interest on the Judgment at the legal rate of 0.19%. Signed by Chief Judge J. Leon Holmes on 4/10/12. (vjt)

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

PLAINTIFF

No. 2:11cv00046 JLH

KEVIN P. MARTIN; and
COOK SALES, INC.

DEFENDANTS
JUDGMENT

Pending before the Court is the motion of the plaintiff, United States of America,
for default judgment, together with affidavit showing that the USDA, FSA, borrower,
defendant Kevin P. Martin, is not an infant or incompetent person and is not in the
military service of the United States. The defendants Kevin P. Martin and Cook Sales,
Inc. have been properly served, have not answered, and are in default. It is therefore,
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.

In order to receive loan assistance from the United States of America,

Kevin P. Martin, Defendant herein, executed certain Promissory Notes, representing
loans made, renewed, rescheduled and/or reamortized between May 16, 2003 and
May 19, 2004 and more particularly described as follows:
Loan
Type

Date of
Note

Principal
Amount

Interest
Rate

Terms

OL-R-4403

May 19,
2004

$86,810.00

3.375%

Due and payable on May 1, 2005
in one (1) installment in the
amount of $89,740.00.

OL-R-4404*

May 19,
2004

$44,807.46

3.25%

15 annual installments in the
amount of $3,822.00 beginning
May 1, 2005.

*Note: This Note was rescheduled from Note No. 44-01 dated May 16, 2003 in the
amount of $102,580.00.
OL-R-4405

May 19,
2004

$70,658.21

3.25%

15 annual installments in the
amount of $6,027.00 beginning
May 1, 2005.

Loan
Type

Date of
Note

Principal
Amount

Interest
Rate

Terms

*Note: This Note was rescheduled from Note No. 44-02 dated May 16, 2003 in the
amount of $68,440.00.
3.

The payments due on the above-described promissory notes are in default.

Plaintiff declared the entire balance due and payable. Despite demand, no payment was
received from Kevin P. Martin. There is due and owing on the promissory notes of Kevin
P. Martin payable to the United States of America, U.S. Department of Agriculture, Farm
Service Agency, the total principal sum of $116,572.92, plus interest in the sum of
$27,427.21, accrued to August 23, 2011, for a total balance of $144,000.13 due as of
August 23, 2011, and thereafter at the daily rate of $10.38 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.
4.

Judgment is hereby awarded to the United States of America, acting by and

through the U.S. Department of Agriculture, Farm Service Agency, against Kevin P.
Martin in the sum of $144,000.13 as of August 23, 2011, with interest thereafter at the
rate of $10.38 per day to the date of entry of this Judgment, with interest on the
Judgment at the rate as provided in 28 U.S.C. § 1961, including any deficiency remaining
after sale of the farm machinery and equipment described herein, for which writs of
garnishment, execution and attachment may issue, as provided by law.
5.

The above-described indebtedness due and owing to the plaintiff is secured

by security agreements (chattels and crops) dated May 16, 2003 and May 19, 2004,
respectively, executed by Defendant Kevin P. Martin. Plaintiff’s security interest was
properly perfected by the filing of a UCC Financing Statement on May 16, 2003, with
the Circuit Clerk and Ex-Officio Recorder of Cross County, as Instrument No. 59308,
which was continued on May 8, 2008, and the filing of a UCC Financing Statement on
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May 19, 2004 in Cross County, as Instrument No. 59889. By execution of the Security
Agreements, defendant Kevin P. Martin granted and conveyed to plaintiff a security
interest in all farm equipment and farm machinery, then owned or thereafter acquired,
and all replacements, substitutions and additions, including, but not limited to, the
following:
Quantity

Kind

Manufacturer

Size/Type

Condition

1

Bush Hog

John Deere

3210

Fair

105577

1

Disk

Massey-Ferguson

820 — 25’

Fair

1-867900811

1

Ramps

Massey-Ferguson

1

Planter

Int’l. Harvester

900

Fair

1

Field
Cultivator

Int’l. Harvester

4800 Shank

Fair

1

Field
Cultivator

John Deere

S-Tine —
28’

Fair

N00960X012650

1

Sprayer

Bowman

200 Gallon

Fair

3PT

1

Tractor

John Deere

4850

Fair

1

Tractor

John Deere

4430

Fair

1

ThreeWheeler

Polaris
Expedition

4x4

Fair

2002

4XACK42A12C5
99441

1

Truck

Dodge

Laramie/SL

Fair

1999

3B7HF13Z0XG2
12176

1 set

Post Hole
Diggers

Howse

3PT Hitch

Fair

1

Chain
Ditcher

Sidewinder

3PT PTO

Fair

1

Heavy Duty
Trailer

8’ x 8’

Fair

1

Electric
Compressor

16 Gallon

Fair

1

Bed
Conditioner

Forrest City
Machine

18’ — Do
All

Fair

1

Truck

Dodge

Ram Pickup

Fair

1999

3B7HF13Z0XG2
12176

6.

Year

Serial No.

Fair

1994

1995

JAG0060490

RW4850P004259
037926R

Defendant Kevin P. Martin, his representatives, employees, and agents, are

directed to surrender and deliver all of the above-described machinery and equipment,

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together with all replacements, substitutions and additions, to the U.S. Department of
Agriculture (USDA), Farm Service Agency (FSA) at a time and place designated by
FSA. The above-described farm equipment and machinery shall be sold, or otherwise
disposed of, by USDA, FSA, in a commercially reasonable manner, as provided by
applicable provisions of the Arkansas Uniform Commercial Code, Ark. Code Ann. § 4-9601, et. seq. The proceeds from such sale, or other disposition, after expenses shall be
first paid to USDA, FSA, to the extent of the indebtedness owed to it. Any remaining
proceeds shall be disbursed as provided by applicable provisions of the Arkansas
Uniform Commercial Code.
7.

Any interest held or claimed by defendant Cook Sales, Inc. in the above-

described farm machinery and equipment by virtue of a judgment entered on
February 15, 2007 in the Circuit Court of Cross County, Arkansas in Cook Sales, Inc. v.
Kevin Martin, Case No. CV-2007-31, is subsequent and subordinate to the plaintiff’s
security interest.
8.

The Court retains jurisdiction of this cause for the making of such further

orders as may be necessary to effectuate this judgment.
DATED this 10th day of April, 2012.

________________________________
UNITED STATES DISTRICT JUDGE

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