A Saskatoon special crops broker temporarily barred from doing business in North Dakota has been vindicated.
The state’s Public Service Commission lifted a cease and desist order levied earlier this month against Rayglen Commodities Inc. The company can now resume grain-sourcing activities in North Dakota.
Rayglen president Ray Germain said the order was rescinded after his firm applied considerable legal pressure on the government agency.
“We responded with a full battery of lawyers down there. We decided that we were being treated unfairly and I guess they saw the light.”
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A state commissioner offered a slightly different take on the resolution of the conflict.
Kevin Cramer said the agency reached a settlement with Rayglen that cleared up confusion over how the company had been operating in the state.
The cease and desist order was initiated by the commission when Rayglen was deemed to be buying grain without a licence, faxing offers to sellers on its company letterhead.
Once the broker convinced the agency that it was only an agent in those deals acting on behalf of licensed North Dakota grain buyers, the order was dissolved.
“It was simply an administrative mistake and in fact they were operating under the law and will continue to operate under the law,” said Cramer.
Germain claims the order was issued in response to pressure exerted by local grain companies that felt Rayglen had “upset the marketplace” this fall by offering substantial price incentives to source good quality flax, lentils and peas on behalf of some aggressive buyers.
He believes the credibility of his Saskatoon brokerage firm has been sullied by the actions taken by the state agency.
“We have notified the North Dakota commission that there could be and probably will be a demand for damages,” said Germain. “At least get my legal fees paid anyway.”
