Farmington Hills, Mich.-based Federated Railways, Inc. owner Louis Ferris, in a statement released Friday, Jan. 16, 2015 said he has filed a lawsuit against Michael Lerner, the owner of Rail Logistics and Cold Train.
The lawsuit by Ferris seeks to recover over $1.2 million from Michael Lerner as a result of Ferris' failed acquisition attempt last year of Overland Park, Kan.-based Cold Train, which Ferris claims was caused by Lerner's deliberate shutdown of Rail Logistics, the parent company of Cold Train.
The suit was filed with the Tenth Judicial District's District Court, Johnson County, Kan. The six-page document seeks up to $1.25 million in compensation for (a) repayment of a $1.25 million loan; "(b) interest accrued at the contractual rate of 2% annually through August 21, 2014; (c) interest from and after August 22, 2014, accruing at a rate of 8% annually; (d) expenses and reasonable attorneys' fees and expenses that Movants have incurred and will incur to protect or enforce their rights relating to the Note and Loan Documents; and (e) prejudgment interest and post-judgment interest as permitted by law, as well as any other relief that/the Court deems just."
Last August Cold Train announced it had suspended shipment of doublestacked, containerized fruits, vegetables, and other food products from its terminal in Quincy, Wash. The company cited congestion on BNSF Railway's Northern Corridor, along with intermodal service adjustments that BNSF implemented last April, for the suspensionl.
The move affected Cold Train's revenue flow, with Cold Train saying it had lost more than 70% of its business, and followed a massive expansion in 2013 of Cold Train's refrigerated container fleet to more than 400 53-foot containers.