Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-ared-1_18-cv-00042/USCOURTS-ared-1_18-cv-00042-4/pdf.json

Nature of Suit Code: 190
Nature of Suit: Other Contract Actions
Cause of Action: 28:1332 Diversity-Breach of Contract

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IN THE UNITED STATES DISTRICT COURT

EASTERN DISTRICT OF ARKANSAS

NORTHERN DIVISION

BMO HARRIS BANK, N.A. PLAINTIFF

v. Case No. 1:18-cv-00042-KGB

MID-ARK UTILITIES & RIG

SERVICES, INC., et al. DEFENDANTS

FINAL JUDGMENT

By prior Order, this Court entered default judgment in favor of plaintiff BMO Harris Bank, 

N.A. (“BHB”), and against defendant Mid-Ark Utilities & Rig Services, Inc. (“Mid-Ark”) in the 

amount of $155,456.71, consisting of the principal amount of $118,950.79; accrued and unpaid 

interest in the amount of $3,988.07 for the period April 9, 2018, to June 19, 2018, based on interest 

that accrued on the principal amount at the rate of $56.17 per day; accrued and unpaid interest in 

the amount of $27,635.64, for the period June 20, 2018, to October 30, 2019, based on interest that 

accrued on the principal amount at the same rate; $3,382.21 in late charges; and $1,500.00 in legal 

expenses (Dkt. No. 35). Pursuant to 28 U.S.C. § 1961, the Court ordered Mid-Ark to pay post 

judgment interest at a rate of 2.58% per year until judgment is paid in full (Id.). 

By prior Order, this Court entered summary judgment in favor of plaintiff BHB and against 

separate defendant Lonnie Graham (Dkt. No. 29). In that Order, the Court adopted the following 

findings of fact as set forth in BHB’s statement of undisputed material facts attached to its motion 

for summary judgment against Mr. Graham (Dkt. No. 27-4). Mid-Ark entered into a Loan and 

Security Agreement (the “Agreement”) with BHB in the total amount of $312,207.00 for the 

purchase of certain Equipment (the “Equipment”) (Id., ¶ 1). Pursuant to the Agreement, Mid-Ark 

agreed to make monthly payments for the purchase of the Equipment beginning on or about March 

1, 2016, for a term of 60 months (Id., ¶ 2). Pursuant to the Agreement, Mid-Ark was obligated to 

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pay a minimum monthly payment of $5,203.45 (Id., ¶ 4). Pursuant to paragraph 5.1 of the 

Agreement, Mid-Ark would be in default if the “Debtor” failed to pay when due any amount owed 

by the “Debtor” to BHB under the Agreement (Id., ¶ 5). Further, pursuant to paragraph 5.2 of the 

Agreement, upon default, BHB may “declare the indebtedness hereunder to be immediately due 

and payable.” (Id., ¶ 6). The Agreement was signed by Mike Penney in his capacity as President 

of Mid-Ark (Dkt. No. 27-2, at 10).

On or about December 29, 2015, Mr. Graham executed a Continuing Guaranty (the 

“Graham Guaranty”) (Dkt. No. 27-4, ¶ 7). Pursuant to the Graham Guaranty, Mr. Graham agreed 

to the prompt payment and performance of all obligations, liabilities, and undertakings of MidArk to BHB (Id., ¶ 8). Mr. Graham entered into a valid written contract with BHB to induce BHB 

to extend credit to Mid-Ark, whereby he personally guaranteed Mid-Ark’s prompt payment of all 

amounts owed to BHB, including all of Mid-Ark’s then-existing and future obligations, debts, and 

liabilities to BHB (Id., ¶ 9). By executing the Graham Guaranty, Mr. Graham guaranteed the 

repayment of all amounts due under the Agreement and expressly agreed, and is obligated, to pay 

BHB’s reasonable attorney fees and cost of any action instituted upon Mid-Ark’s default (Id., ¶ 

10). The Guaranty states that it “is an absolute and unconditional guarantee of payment and not 

of collectability” (Dkt. No. 27-2, at 13).

On or about December 1, 2017, Mid-Ark defaulted under the terms of the Agreement by 

failing to make the minimum monthly payment (Dkt. No. 27-4, ¶ 14). Mr. Graham defaulted on 

his contractual obligations by failing to pay said amount upon Mid-Ark’s default (Id., ¶ 15). All 

the Equipment was surrendered to BHB and then sold in a commercially reasonable manner (Id., 

¶ 16). The amounts set forth in this Order, and in the Default Judgment entered against Mid-Ark, 

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recite the damages incurred by BHB for which Mid-Ark, and in turn Mr. Graham as guarantor, are 

liable. 

As a result, the Court enters final judgment as to defendant Mid-Ark as the defaulting 

debtor and Mr. Graham as the defaulting guarantor in the following amounts:

(1) the amount of $155,456.71, consisting of:

(a) the principal amount of $118,950.79; 

(b) accrued and unpaid interest in the amount of $3,988.07 for the period April 9, 

2018, to June 19, 2018, based on interest that accrued on the principal amount at the rate 

of $56.17 per day; 

(c) accrued and unpaid interest in the amount of $27,635.64, for the period June 

20, 2018, to October 30, 2019, based on interest that accrued on the principal amount at 

the same rate; 

(d) $3,382.21 in late charges; and 

(e) $1,500.00 in legal expenses (Dkt. No. 35). 

(2) pursuant to 28 U.S.C. § 1961, the Court orders post judgment interest at a rate of 2.58% 

per year until judgment is paid in full. 

So ordered this 7th day of February, 2020.

________________________________

Kristine G. Baker

 United States District Judge

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