United States District Court, N.D. Mississippi, Aberdeen Division
SHARION AYCOCK UNITED STATES DISTRICT JUDGE
matter is before the Court on Plaintiff's Motion for
Preliminary Injunction. The Court held hearings on the matter
on April 6, 2018 and April 13, 2018. The Court summarizes its
findings as follows.
and Procedural History
February 2015 to November 2015, Defendants entered into seven
loan and security agreements with non-party lenders General
Electric Capital, GE Capital Commercial, Inc. and
Transportation Truck and Trailer Solutions, LLC, pursuant to
which the lenders financed the purchase of certain collateral
for use in the Defendant borrowers business. The lenders
subsequently transferred all of their rights, titles and
interests in the agreements and collateral to Plaintiff.
to the terms of the agreements, when Defendant borrowers
failed to make payments in November 2017, Plaintiff
accelerated the amounts due and owing under the agreements.
After written demands to surrender possession of the retained
collateral went unanswered, Plaintiff filed its
Complaint , as well as its Motion for Temporary
Restraining Order (TRO), Motion for Preliminary Injunction,
and Motion for Replevin  in this Court on January 30,
2018. Plaintiff alleges that Defendants are in default for
several reasons, requiring the Defendant borrowers to return
the respective units of property to Plaintiff.
Plaintiff alleges that Defendant is in continuing payment
default, occurring over the span of several months. Second,
Plaintiff alleges that Plaintiffs failed to provide insurance
documentation. Third, Plaintiff alleges that Defendants are
in default due to the fact that Montana Farms, LLC was
dissolved. Finally, Plaintiff alleges that Defendants leased
the sixth unit of collateral to McIntosh Transport, LLC.,
contravening the terms of the Sixth Agreement.
Plaintiffs failed to properly serve all Defendants. On
February 19, 2018, personal service was accomplished by
process server on Defendants Terry McIntosh and Angelena
Cook, individually. Thereafter, Plaintiff filed a
“Supplemental Certificate of Service, ”
certifying that true copies of relevant pleadings were mailed
to the attorneys who have appeared for Defendants Montana
Farms, LLC, Angelena Cook, and Terry McIntosh. Plaintiff
completed service on Alonzo Sykes, Senior, and Montana Farms
on March 8, 2018. However, Plaintiff has not completed
service upon Alonzo Sykes Jr., the correct registered agent
for Montana Farms. Thus, on March 7, 2018, this Court denied
Plaintiff's Motion for Temporary Restraining Order
without prejudice, citing certain failures to comply with
Federal Rule of Civil Procedure 65.
Plaintiff filed its Motion for Reconsideration, rearguing its
requests for injunctive relief and correcting some of its
procedural defects. On March 16, the Court granted
Plaintiff's Motion for Reconsideration regarding
Plaintiff's Motion for TRO, holding in abeyance the
determination of more permanent relief until the present
hearing. Plaintiff filed its replevin bond in the amount of
$570.893.26 on March 20, 2018. After expiration of the
initial TRO, the Court granted an extension pending
resolution of the present motion for preliminary injunction.
elements are required for the grant of a preliminary
(1) The movant must establish a substantial likelihood of
success on the merits;
(2) There must be a substantial threat of irreparable injury
if the injunction is not granted;
(3) The threatened injury to the plaintiff must outweigh the
threatened injury to ...