A district court judge has granted a default judgment against Revier Cattle Co. of Olivia, MN, after the company failed to pay loans and allegedly transferred the family business to a daughter in an attempt to shield assets.
Judge Donovan Frank of the U.S. District Court for the District of Minnesota ordered Revier Brand Group LLC (RBG) on June 11 to repay over $2.5 million plus pre-judgment interest over $500,000 to PLCC.
Revier Cattle Co. is a diversified operation founded in 1867 with Angus cattle, a feedlot and a branded beef program. Revier Cattle Co. was profiled in a 2020 Star Tribune article detailing the 10,000-head operation and the branded beef program selling in 21 states, 300 grocery stores and 2,500 restaurants.
The COVID-19 pandemic hurt business, and Revier Cattle Co. was forced to scale down production, resulting in the company obtaining three loans from Producers Livestock Credit Corporation (PLCC). The three loans were obtained in September and October 2020 for $1.4 million each.
The cattle were collateral for the loans, and PLCC was granted the right to repossess them in the event of a default. In 2021, RBG purchased 3,226 head of cattle from Revier Cattle Co. for just over $4.8 million and repaid PLCC $1.5 million despite the security interest of PLCC. After an unsuccessful mediation, PLCC filed suit against Revier Cattle Co. in February 2022 and won a judgment against Revier Cattle Co. and its affiliates, Thomas and Libby Revier, for just over $2.5 million.
Transfer scheme
A second suit was filed in January 2024. The complaint details an alleged scheme involving Thomas Revier, Moira Revier and BRR Properties LLC (BRR) of Fargo, ND, to avoid fulfilling obligations to PLCC.
During the loan litigation, BRR acquired loans originally held by Sandton Credit Solutions Master Fund IV LP, secured by Revier Cattle Co.’s feedlot property and equipment. BRR, Revier Cattle Co., and Thomas Revier allegedly schemed to let BRR foreclose on Revier Cattle Co.’s property to eliminate liens and transfer the feedlot operation to a new Revier entity.
The new entity, MNR LLC, formed by Thomas’s daughter Moira, who was “still a full-time college student in Moorhead, MN,” took over Revier Cattle Co.’s operations using the same equipment and personnel, including Thomas Revier and Libby Revier.
MNR leased the feedlot property from BRR starting Jan. 1, 2022, without paying Revier Cattle Co. or BRR for the use of the property and equipment until April 2022.
The court documents allege that MNR continued to operate identically to Revier Cattle Co., including using Revier Cattle Co.’s social media platforms and intellectual property under the pretense of a new entity to evade financial responsibilities. Moira Revier testified in June 2023 that the only difference between MNR and Revier Cattle Co. is that MNR does not own cattle; otherwise, the feedlot operation is identical.
PLCC alleges these actions were fraudulent and aimed at stripping Revier Cattle Co. of its assets to avoid paying creditors, including PLCC. The lawsuit sought to address the damages incurred by PLCC due to these alleged fraudulent activities. They asked the judge to rule against RBG for unjust enrichment and the cattle’s value, and against MNR and BRR for the fraudulently transferred cattle operation, the feed’s value, use of the feedlot and equipment, and Revier Cattle Co.’s intellectual property if used by MNR for Revier-branded beef sales.
Attorneys for BRR Properties had filed a motion to dismiss these claims, but Judge Frank denied the request and allowed the lawsuit to proceed.
Revier Cattle Co. also faces a lawsuit filed in May 2024 from Farmer’s Business Network for an unpaid balance on a note dating back to April 2020. — Charles Wallace, WLJ contributing editor
