IFG Port Holdings, LLC v. South Louisiana Rail Facility, LLC

District Court, W.D. Louisiana·Decided July 21, 2026·No. 2:24-cv-01095·Unknown

Opinion

UNITED STATES DISTRICT COURT WESTERN DISTRICT OF LOUISIANA LAKE CHARLES DIVISION

IFG PORT HOLDINGS, LLC CIVIL ACTION NO. 24-1095

VERSUS JUDGE ALEXANDER C. VAN HOOK

SOUTH LOUISIANA RAIL MAGISTRATE JUDGE LEBLANC FACILITY, LLC

MEMORANDUM RULING Pending before the Court is a Motion for Judgment on the Pleadings (“Motion”) filed by plaintiff IFG Port Holdings, LLC (“IFG”). Record Document 26. Defendant South Louisiana Rail Facility, LLC (“SLRF”) filed a Memorandum in Opposition and IFG filed a Reply. See Record Documents 28 and 29). For the reasons assigned herein, IFG’s Motion is GRANTED IN PART and DENIED IN PART. FACTUAL BACKGROUND This litigation boils down to a battle about rice storage. Plaintiff and counter- defendant IFG is a marine terminal operator that manages, controls, and operates a facility located at Port of Lake Charles in Calcasieu Parish, Louisiana, wherein IFG provides storage and vessel loading services for commodities to be loaded onto ocean- going vessels. Record Document 4 at 7. Defendant and counter-plaintiff SLRF has maintained an open account with IFG for many years for the provision of elevator and terminal services. Record Documents 1-2 at 5; 26-2 at 6; 28 at 7. On October 12, 2023, SLRF executed two separate contracts, each entitled a Terminal Use Application (“TUA”), wherein SLRF stated that it would transport approximately 23,120 metric tons and 25,000 metric tons, respectively, of U.S. No.2 rough rice by truck to IFG’s facility for storage. Record Document 26-3 at 2-3. On November 15, 2023, SLRF executed a third TUA wherein it stated it would be

delivering an additional 20,000 metric tons of rough rice to the IFG facility for storage, Record Document 26-3 at 4, and on April 19, 2024, a fourth TUA was executed stating 30,000 ± 10% metric tons of rough rice would be delivered to the IFG facility for storage. Record Document 26-3 at 1. None of the TUAs listed how long the rice would be stored or onto what vessel it was ultimately to be loaded. Record Document 26-3 at 1-4. All of the TUAs stated at the bottom in all capital letters: THE UNDERSIGNED COMPANY, AGENTS FOR THE ABOVE-NAMED VESSEL OR BARGE, IN CONSIDERATION FOR APPROVAL OF THE APPLICATION, AGREES TO BE BOUND BY ALL RULES, REGULATIONS, TERMS, CONDITIONS AND CHARGES AS PUBLISHED IN THE IFG EXPORT GRAIN TEMRINAL [sic] TARIFF(S), INCLUDING ACCEPTANCE OF FINANCIAL RESPONSIBILITY THEREFOR. Id. The parties disagree on the exact amount of rice SLRF trucked to the IFG facility, with IFG stating: “In or around December 9, 2023, SLRF delivered approximately 27,000 metric tons of rough rice … into IFG’s silos[.]”. Record Document 26-2 at 6. SLRF states: “[B]etween September 25, 2023, and October 9, 2023, SLRF delivered approximately 23,159.82 metric tons of rough rice to the Facility to be stored and loaded onto an ocean-going vessel by IFG.… [B]etween November 9, 2023, and April 30, 2024, SLRF delivered approximately 27,414.91 metric tons of rough rice to the Facility to be stored and loaded onto an ocean-going vessel by IFG.” Record Documents 4 at 7-8; 4-1, 4-2, 4-3, and 4-4. Ultimately, some of SLRF’s rice was loaded onto the M/V Ruddy, and some onto the M/V Nordic Malmoe, with approximately 400 metric tons left stored in the IFG storage silos. Record Documents 26-2 at 6; 28 at 7. The facts and circumstances

around why all of the rice was not loaded onto the two motor vessels is disputed by the parties, resulting in this lawsuit. SLRF maintains that it directed IFG to load 23,136.24 metric tons of rice stored at IFG’s facility in late 2023 onto the M/V Ruddy; however, when the vessel arrived at its destination the amount of rice on board was approximately 500 metric tons short. Record Document 4 at 7.1 SLRF also maintains that it directed IFG to load all of the additional 27,414.91 metric tons of rice stored at IFG’s facility in early 2024 on

board the M/V Nordic Malmoe; however, only 27,000 metric tons were actually loaded and IFG improperly retained the remaining 414.91 metric tons at its facility, charging SLRF ongoing storage fees and ultimately penalties for that improper retainage. Id., at 7-10. According to SLRF, both of those actions resulted in lost profits and improper storage fees being charged. Id., at 10; Record Document 28 at 18, 20.2 IFG maintains that it properly loaded the M/V Ruddy, and under Tariff No. 3

it is not responsible for any shortage that may have been found later, long after the rice was out of IFG’s control.3 Record Document 26-2 at 11-12. IFG also maintains

1 Nothing in the record explains the discrepancy between the 23,159.82 metric tons of rough rice described in SLRF’s Answer as being delivered to IFG for storage, and the 23,136.24 metric tons of rice SLRF ordered to be loaded on the M/V Ruddy. 2 IFG sold the rice remaining in its facility to a third party and credited SLRF’s outstanding balance with the proceeds of that sale. Record Documents 4 at 10 and 26-2 at 7. SLRF alleges that IFG converted that retained rice for its own purposes and the credit does not matter since SLRF does not owe any additional amounts. Record Document 28 at 20. 3 Elevator Tariff No. 3 is a document produced by IFG containing rules and regulations and other terms related to storage at their elevator facilities in Lake Charles. See Record Document 26-4. that it loaded the M/V Nordic Malmoe according to the vessel manifest and the directions of the vessel’s captain, and that SLRF’s request to load all of the rice conflicted with the captain’s directions. Record Documents 8 at 3; 29 at 8, 10 n.4. It

then states that it notified SLRF of the remaining rice and requested that SLRF promptly remove that rice. Record Document 26-2 at 6-7. Ultimately, IFG sued SLRF in Louisiana state court over the allegedly unpaid storage fees and other costs. Record Document 1-2. In its Answer, SLRF asserted two counterclaims against IFG, alleging violations of the federal Grain Storage Act (7 U.S.C. § 71 et seq.), Warehouse Act (7 U.S.C. § 241 et seq.), and Shipping Act (46 U.S.C. § 40101 et seq.), along with state law claims of breach of contract and

conversion. Record Document 4 at 7-11. SLRF removed the case to federal district court, Record Document 1, and the magistrate judge found that the case was in admiralty and should be litigated in federal court. Record Document 17. IFG now moves for judgment on the pleadings, alleging that none of the federal statutes cited in SLRF’s counterclaims provides for a private right of civil action, and the waiver language in Tariff No. 3 precludes all of SLRF’s claims. Record Document 26.

LAW AND ANALYSIS A. Legal Standard. “After the pleadings are closed - but early enough not to delay trial - a party may move for judgment on the pleadings.” FED. R. CIV. P. 12(c). A Rule 12(c) motion is designed to dispose of cases where the facts are not in material dispute and a judgment on the merits can be rendered by looking to the substance of the pleadings and any judicially noted facts. Walker v. Beaumont Indep. Sch. Dist., 938 F.3d 724, 734 (5th Cir. 2019)(citing Linicomn v. Hill, 902 F.3d 529, 533 (5th Cir. 2018)). In

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