Brighthouse Life Insurance Co has filed a lawsuit against a California nut grower, alleging breach of contract for defaulting on nine loans totaling $48.6 million.
The suit, filed on October 10 in the US District Court for the Eastern District of California, Fresno Division, names ACDF LLC, successor to 104 Partners LLC and A Farms LLC, along with Maricopa Orchards, LLC, Cantua Orchards, LLC, and individuals Farid Assemi, Darius Assemi, and John Does 1-100 as defendants.
Brighthouse, which spun off from MetLife Inc in 2017, stated that it was involved in a February 2017 loan for $11.4 million to ACDF, secured by 378.75 acres of land used to grow pistachios and almonds. The lawsuit centers on agricultural land tied to these loans.
Additionally, in a separate filing, Metropolitan Life Insurance Co disclosed that it issued a $23.5 million loan to the same defendants in April 2021, linked to more than 1,000 acres of farmland. Together, loans from MetLife and its affiliates total $48.6 million.
Brighthouse is seeking the appointment of a receiver to oversee the farmland, crops, and equipment during the litigation process. The company claims the defendants are experiencing significant financial difficulties and have been unable to repay the loans.
The total defaulted loan amount stands at over $48.6 million from nine agreements, prompting foreclosure action.
In its filing, Brighthouse stated that the guarantor defendants failed to make a $131,249.71 payment due on Sept. 10, resulting in the acceleration of the loan. The company alleges it has incurred damages exceeding $2.87 million, with additional costs, fees, and interest continuing to accumulate.
Prudential Insurance Co of America and U.S. Bank National Association have also filed claims related to the default, alleging more than $770 million in outstanding obligations. In a prior filing, Prudential and PGIM Real Estate Finance, LLC successfully petitioned the court to appoint a receiver to monitor the farming operations and finances.
Prudential has since requested the extension of the receivership past November 1 to ensure proper care of the nut trees and prevent further loss of value.
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