Justia Agriculture Law Opinion Summaries

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The United States District Court for the Southern District of Georgia certified three questions to the Georgia Supreme Court regarding the scope of the Georgia Dealers in Agricultural Products Act, Ga. L. 1956, p. 617 (codified as amended at OCGA sections 2-9-1 to 2-9-16) (“the Act”). At issue was the effect of the Act’s provisions upon contracts entered into by an agricultural products dealer that failed to obtain a license from the Georgia Commissioner of Agriculture: in this case, a contract entered into between San Miguel Produce, Inc. (“San Miguel”), a California corporation, and L. G. Herndon Jr. Farms, Inc. (“Herndon Farms”), a Georgia corporation. The Supreme Court concluded: (1) an entity as described by the district court did qualify as a dealer in agricultural products under the Act and was not exempt under OCGA 2-9-15 (a) (1), with the limited exception of specific transactions “in the sale of agricultural products grown by [itself];” (2) the Act’s licensing requirements were part of a comprehensive regulatory scheme in the public interest and not merely a revenue measure; and (3) if a dealer has failed to obtain a license as required by OCGA 2-9-2, it may not recover under a contract to the extent that the contract relates to business coming within the terms of the Act. View "San Miguel Produce, Inc. v. L.G. Herndon, Jr. Farms, Inc." on Justia Law

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Shadow Industries, LLP, appealed a district court judgment dismissing its eviction action and holding the tenants David and Chris Hoffman had timely exercised their option to extend the term of the parties’ lease agreement. Shadow argued the district court erred in finding the parties’ lease agreement to be ambiguous, finding the option to extend the lease expired on February 1, 2019, and finding the Hoffmans timely exercised their option to extend the lease. The North Dakota Supreme Court found the district court’s interpretation of the lease as having ambiguity as to when the lease terminated was premised upon the court’s observation that “[w]hen ‘crop years’ end and begin is undefined.” To this, the Supreme Court disagreed that the lease was ambiguous and failed to define the end of the lease. The Supreme Court found the lease terminated at the end of the 2018 crop year. "While determining when the end of the 2018 crop year occurred may be a question of fact, the term is not ambiguous simply because it requires a future event or contingency." There was testimony that the crop year ended no later than October 2018; following the harvesting of their crops and still in 2018, the Hoffmans deep ripped the land, tilled to create fall bedding, and applied fertilizer to prepare for the 2019 crop year. "On the basis of these facts, and the absence of any contrary facts in the record, we conclude as a matter of law the 2018 crop year ended and the lease terminated in 2018." Because the facts of this case compelled a finding the 2018 crop year ended in 2018 and the lease terminated at the end of the 2018 crop year, the Court found the exercise of the option in January 2019 was not timely and the lease terminated. It therefore reversed judgment and remanded for further proceedings. View "Shadow Industries, LLP v. Hoffman, et al." on Justia Law

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In November 2013, Washington voters rejected Initiative 522 (I-522), which would have required labels on packaged foods containing genetically modified organisms (GMOs). The Grocery Manufacturers Association (GMA) opposed state-level GMO labeling laws, including I-522. Over the course of the 2013 election cycle, GMA solicited over $14 million in optional contributions from its member companies, $11 million of which went to support the “No on 522” political committee. The payments to No on 522 were attributed solely to GMA itself, with no indication of which companies had provided the funds. Prior to the initiation of this lawsuit, GMA was not registered as a political committee and did not make any reports to the Public Disclosure Commission (PDC). The State filed a complaint alleging that GMA intentionally violated the Fair Campaign Practices Act (FCPA)'s registration and disclosure requirements and the FCPA’s prohibition on concealing the sources of election-related spending. GMA countered that it cannot be subject to the FCPA’s registration and disclosure requirements because those requirements violate the First Amendment as applied. U.S. CONST. amend. I. The trial court agreed with the State, imposed a $6 million base penalty on GMA, and trebled the penalty to $18 million after determining GMA;s violations were intentional. The Court of Appeals largely affirmed, but revered the treble penalty, holding that one had to "subjectively intend to violate the law in order to be subject to treble damages." After review, the Washington Supreme Court affirmed the conclusion that the FCPA, and that the FCPA was constitutional as applied. The Court reversed the appellate court on the treble penalty, holding that the trial court applied the proper legal standard to determine GMA intentionally violated the FCPA. The matter was remanded to the Court of Appeals for consideration of GMA's claim that the penalty imposed violated the excessive fines clauses of the federal and Washington constitutions. View "Washington v. Grocery Mfrs. Ass'n" on Justia Law

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Jeff Good and Harry’s Dairy entered into a contract providing that Harry’s Dairy would purchase 3,000 tons of Good’s hay. Harry’s Dairy paid for and hauled approximately 1,000 tons of hay over a period of approximately eight weeks, but did not always pay for the hay before hauling it and at one point went several weeks without hauling hay. After Harry’s Dairy went a month without hauling additional hay, Good demanded that Harry’s Dairy begin paying for and hauling the remaining hay. Harry’s Dairy responded that it had encountered mold in some of the hay, but would be willing to pay for and haul non-moldy hay at the contract price. Good then sold the remaining hay for a substantially lower price than he would have received under the contract and filed a complaint against Harry’s Dairy alleging breach of contract. Harry’s Dairy counterclaimed for violation of implied and express warranties and breach of contract. The district court granted summary judgment in favor of Good on all claims, and a jury ultimately awarded Good $144,000 in damages. Harry’s Dairy appealed, arguing that there were several genuine issues of material fact precluding summary judgment, that the jury verdict was not supported by substantial and competent evidence, and that the district court erred in awarding attorney fees, costs, and prejudgment interest to Good. Finding only that the district court erred in granting summary judgment on the implied warranty of merchantability counterclaim, the Idaho Supreme Court reversed as to that issue, affirmed as to all others, and remanded for further proceedings. View "Good v. Harry's Dairy" on Justia Law

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Plaintiffs filed suit against the United States and others, alleging violations of the Federal Tort Claims Act (FTCA) and seeking monetary damages associated with their loss of livestock following the implementation of a temporary fever tick quarantine. The Fifth Circuit affirmed the district court's dismissal for lack of jurisdiction, holding that plaintiffs' claims were barred by the quarantine exception to the FTCA. The quarantine exception states that the statute's sovereign immunity waiver does not apply to any claim for damages caused by the imposition or establishment of a quarantine by the United States. In this case, plaintiffs' damages were caused by the implementation of the quarantine and thus defendants' challenged actions fell within the exception. View "Cascabel Cattle Co., LLC v. United States" on Justia Law

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In this complaint seeking to have the Attorney General preliminarily and permanently enjoined from distributing monies received pursuant to an agreement between the Attorney General and Smithfield Foods, Inc. and several of its subsidiaries regarding the operation of hog farms to any recipient other than the Civil Penalty and Forfeiture Fund, the Supreme Court held that the payments contemplated by the agreement did not constitute penalties for purposes of N.C. Const. art. IX, 7. In their complaint, Plaintiffs argued that payments made pursuant to the agreement constituted penalties under article IX, section 7 and that the Attorney General lacked the authority to enter into the agreement. The trial court entered summary judgment in favor of the Attorney General, concluding that even if Smithfield and its subsidiaries had entered into the agreement in hope of avoiding future penalties, the payments made under the agreement were not penalties, forfeitures or fines collected for any breach of the penal laws of the State. The court of appeals reversed, concluding that genuine issues of material fact existed precluding summary judgment. The Supreme Court reversed, holding that the payments contemplated by the agreement did not constitute penalties for purposes of article IX, section 7. View "New Hanover County Board of Education v. Stein" on Justia Law

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House owns an organic farm, adjacent to the Property, formerly owned by Moller. In 2002, House entered into a six-year lease with Moller for 35 farmable acres, containing a renewal option and a right of first refusal. House converted the Property to certified organic status. In 2007, Moller, with no notice to House, agreed to sell the Property to Foss. Foss, a licensed real estate agent, prepared the agreement, which did not contain a fixed closing date. House became aware of the agreement, notified Foss about the right of first refusal, and sued Moller. While the lease remained in effect, Foss entered the Property and sprayed nonorganic herbicides, cut down trees, and altered the fencing. House sued Foss. Moller filed for bankruptcy. The Property was foreclosed on and sold to a third party in 2015. The trial court found Foss liable for inducing a breach of contract, intentionally interfering with House’s prospective economic advantage, conversion, trespass, and negligence and awarded compensatory damages of $1,669,705 and $1,000 in punitive damages. House sought attorney fees and costs. The court denied the motion. The court of appeal remanded for a determination of reasonable attorney fees under Code of Civil Procedure 1021.9, which refers to “any action to recover damages to personal or real property resulting from trespassing on lands either under cultivation or intended or used for the raising of livestock.” The damages award is supported by substantial evidence. View "Kelly v. House" on Justia Law

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Iscavo and Villita filed suit against defendant and his now-defunct product distribution company, Coram Deo, for violations of the Perishable Agricultural Commodities Act. The Fifth Circuit affirmed the district court's grant of summary judgment for Iscavo and Villita, holding that defendant was properly held personally liable for the amounts Coram Deo owed for avocados under the Act. The court affirmed the district court's award of attorney fees to Villita, but vacated and remanded the award of attorneys' fee to Iscavo for the district court to explain the basis for its award. In this case, it was unclear from the record whether Iscavo's invoice required Coram Deo to pay attorneys' fees incurred in Iscavo's collection efforts, and the district court gave no explanation for its award to Iscavo. View "Iscavo Avocados USA, LLC v. Pryor" on Justia Law

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The Supreme Court vacated the judgment of the intermediate court of appeals (ICA) affirming the order of the circuit court granting summary judgment in favor of Defendant and dismissing Plaintiff's complaint alleging that Defendant's cattle trespassed onto his property causing damage to his sweet potato crop, holding that the legislature intended to hold owners of livestock liable for the damage caused by the trespass of their animals on cultivated land whether the land is properly fenced or not. In granting summary judgment for Defendant, the circuit court concluded (1) Hawai'i's statutory law governing the trespass of livestock onto cultivated land did not apply to Plaintiff's property because the property was neither "properly fenced" nor "unfenced"; and (2) a provision in Plaintiff's lease making Plaintiff fully responsible for keeping cattle out of his cultivated land was not void against public policy. The ICA affirmed. The Supreme Court reversed, holding (1) livestock owners are liable for damages caused by their livestock trespassing onto cultivated land; and (2) the lease provision was contrary to statutory law and public policy and was thus invalid because it had the effect of absolving Defendant of liability for livestock damage to Plaintiff's cultivated land. View "Yin v. Aguiar" on Justia Law

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Jeff Good and Harry’s Dairy entered into a contract providing that Harry’s Dairy would purchase 3,000 tons of Good’s hay. Harry’s Dairy paid for and hauled approximately 1,000 tons of hay over a period of approximately eight weeks, but did not always pay for the hay before hauling it and at one point went several weeks without hauling hay. After Harry’s Dairy went a month without hauling additional hay, Good demanded that Harry’s Dairy begin paying for and hauling the remaining hay. Harry’s Dairy responded that it had encountered mold in some of the hay, but would be willing to pay for and haul non-moldy hay at the contract price. Good then sold the remaining hay for a substantially lower price than he would have received under the contract, and filed a complaint against Harry’s Dairy alleging breach of contract. Harry’s Dairy counterclaimed for violation of implied and express warranties and breach of contract. The district court granted summary judgment in favor of Good on all claims, and a jury ultimately awarded Good $144,000 in damages. Harry’s Dairy appealed, arguing that there were several genuine issues of material fact precluding summary judgment, that the jury verdict was not supported by substantial and competent evidence, and that the district court erred in awarding attorney fees, costs, and prejudgment interest to Good. The Idaho Supreme Court determined the district court erred only in its decision with respect to Good’s breach of contract claim and Harry’s Dairy’s breach of the implied warranty of merchantability claims. Judgment was vacated and the matter remanded for further proceedings. View "Good v. Harry's Dairy" on Justia Law