Court Grants Wells Fargo Claim and Delivery Order Against Dugan Sales and Service

Wells Fargo Wins Court Order for Claim and Delivery Against Dugan Sales and Service

In a recent court ruling at the Codington Courthouse, Wells Fargo Commercial Distribution Finance, LLC (Wells Fargo) has been granted an order for claim and delivery against Dugan Sales and Service. The decision, made by the Honorable Robert L. Spears on July 22, 2024, was based on an affidavit supporting the claim and delivery under SDCL § 21-15-1.

The legal proceedings began when Wells Fargo filed a Summons and Complaint for Claim and Delivery on July 11, 2024, seeking an order for claim and delivery under SDCL § 21-15-1. An affidavit was also filed on the same day, requesting immediate delivery and possession of the collateral securing debt owed by the Defendant.

After serving the Summons, Complaint, and supporting affidavit to the Defendant on July 16, 2024, a Notice of Hearing was issued for a hearing scheduled on July 22, 2024.

According to court documents, the Defendant had entered into an Inventory Financing Agreement with Wells Fargo on March 30, 2007, granting Wells Fargo a security interest in all of the Defendant’s personal property, including inventory. The Defendant failed to make a scheduled payment of $576,412.87 due on June 20, 2024, with the inventory’s estimated value being $1,326,009.71.

The court has now ordered that Wells Fargo is entitled to immediate possession of the collateral, including the inventory, which is permanently and irrevocably assigned to Wells Fargo. The Defendant must promptly deliver the inventory to Wells Fargo, with no specified deadline mentioned. Wells Fargo is authorized to sell, transfer, assign, or dispose of the inventory and receive all proceeds to recoup funds.

KXLG News reached out to Dugan Sales and Service for comment but has not received an immediate response. Stay tuned for further updates on this developing story.