KENNER, LOUISIANA, U.S. — Louis Dreyfus Company Grains Merchandising LLC, a unit of Wilton, Connecticut, U.S.-based commodities giant Louis Dreyfus Co. BV, on Dec. 14 filed a civil action in the U.S. District Court for the Eastern District of Louisiana asking a Louisiana federal judge to confirm a $1.85 million arbitration award against Theco International, Inc. for allegedly failing to honor a corn purchase contract.
According to the filing, Kenner, Louisiana, U.S.-based Theco International signed a contract in April 2014 to buy 29,500 tonnes of U.S. yellow corn from Louis Dreyfus Grains Merchandising LLC “as soon as possible” at $120 per tonne after a Chinese buyer rejected it because it was genetically modified.
But in an arbitration case earlier this year, arbitrators with the Grain and Feed Trade Association determined that Theco only hauled off a small portion of the amount it agreed to take before Louis Dreyfus had to sell the corn, and the arbitrators ordered Theco to pay storage fees and damages.
In its Dec. 14 filing, Dreyfus said it offered to allow Theco to cart off the cargo as late as Aug. 8, but still the award has not been paid.
The arbitration award in favor of Louis Dreyfus is in the amount of $1,852,640.56, which includes $1,529,101.88 in damages, $304,480.01 in storage costs, $19,058.67 in fees and accrued interest through the date of the Dec. 14 filing.
