MINNEAPOLIS, MINNNESOTA, U.S. — Ceres Global Ag Corp. entered into an agreement with The Scoular Co. to settle a pending lawsuit filed by Scoular against Ceres in the United States District Court of the District of Minnesota. As previously disclosed, Scoular had sought injunctive relief and damages relating to the proposed joint development and construction of a grain facility at the Ceres Northgate Commodity Logistics Centre.
In late January 2014, Ceres terminated its planned partnership with Scoular to build a grain facility at the Saskatchewan-based commodity center. Instead Ceres decided to design and develop the grain elevator on its own.
The Northgate Commodities Logistics Centre is a grain, agriculture services and oilfield supplies transloading site.
As part of the settlement, Ceres will pay $11.25 million in cash to Scoular. In turn Scoular will release all claims against Ceres relating to the subject matter of the lawsuit. The settlement includes reimbursement for contributions made during the development of Northgate. Ceres already had taken a $3 million reserve against a potential liability in connection with this lawsuit and will therefore recognize a loss of $8.25 million in the financial statements.
“Settling this case enabled Ceres to avoid significant trial litigation costs and eliminate risks associated with a trial by jury,” said Robert Day, president and chief executive officer at Ceres. “Therefore, we are pleased to have it behind us and we look forward to continuing with our long-term growth plans.”
Ceres Global Ag Corp., headquartered in Minneapolis, Minnesota, U.S., is focused on two primary businesses: a grain storage, handling and merchandising unit; and a commodity logistics unit.
Ceres operates six locations in Minnesota, Saskatchewan and Ontario with an aggregate storage capacity of approximately 29.7 million bushels.
Ceres’ Commodity Logistics unit is focused on the development of a Commodity Logistics Centre in Northgate, Saskatchewan, Canada.
The Scoular Co. operates 90 independent business units that provide supply chain solutions for end-users and suppliers of grain, feed ingredients, and food ingredients around the globe. The company has more than 70 offices and facilities in North and South America, and more than 700 employees. Scoular is engaged in the business of buying, selling, storing and handling grain and ingredients as well as managing transportation and logistics. According to Sosland Publishing Company’s 2018 Grain & Milling Annual, Scoular has a total of 82 grain storage facilities with a total capacity of 131 million bushels.