A trucking company that had been denied access to one of its trailers since late November has reclaimed its property.
In December, a class action lawsuit was filed in Mississippi’s U.S. District Court Aberdeen Division on behalf of Atkins Trucking LLC and “others similarly situated.” The lawsuit claimed that Wells Fargo “wrongfully denied” the company, as well as other third parties, access to impounded trucks and trailers. The equipment was seized in the wake of the United Furniture Industries layoffs on Nov. 21.
At that time, carriers were instructed to not deliver their loads and to return to the nearest United Furniture facility. In order to protect any potential assets loaded in the trailers, Wells Fargo hired Security Associates of Mississippi – a Belmont, Miss.-based security group – to secure the facilities. According to the lawsuit, the group also prevented drivers and carriers from recovering their equipment.
Attorneys for the plaintiff contend the bank should have had someone to unload all of the returning trailers – with the cargo being locked securely inside the warehouse – and all other trailers should be released to the carrier.
The initial lawsuit sought injunctive relief to release the seized equipment. However, nearly two months later, Atkins Trucking and others involved in the dispute had yet to recover their property. On Jan. 18, a motion to grant a temporary injunction was filed in an attempt to reclaim the detained trucks and trailers.
“The defendants are knowingly withholding property, in which they have no possessory of collateral interest in, from its rightful owners,” the motion read. “Despite that knowledge and the attempts by the affected persons to retrieve their property, nearly eight weeks have passed, and the problem still persists.”
In the motion, attorneys for the plaintiffs called the issue “a widespread problem” involving numerous third parties attempting to recover “nearly 2000 trucks and trailers”.
In response to the motion for a temporary injunction, Wells Fargo contends that returning the seized trucks and trailers is out of its control, citing conflicts with United Furniture’s pending bankruptcy case. In January, the court presiding over the bankruptcy converted the case from Chapter 7 to Chapter 11 and ordered the appointment of a Chapter 11 trustee to oversee United’s assets.
“As a result, Wells Fargo is not even capable of ‘denying (plaintiff) and all others similarly situated access to their commercial property,’ let alone actually doing it, as plaintiff asserts,” attorneys for Wells Fargo said in its response.
In the days following the filing, the court directed the bankruptcy trustee to provide an update regarding the status of the trailer belonging to Atkin’s Trucking. On Feb. 8, the trustee reported to the court the trailer had been returned to the company. As a result, the motion for temporary injunction was denied as moot on Feb. 10.
Jack Simpson, an attorney representing Atkins Trucking and others in the case, said they will continue to pursue legal remedies for the other companies involved.
“Atkins Trucking was able to retrieve its trailer last Friday,” Simpson told Land Line via email. “However, the case is still proceeding on behalf of the other individuals and businesses who are still unable to recover their property.”
A spokesperson for Wells Fargo declined to comment further.
The case is set for trial to begin March 4, 2024. LL
Trucking company reclaims trailer amid pending lawsuit - Land Line Media
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