Justia Agriculture Law Opinion Summaries

Articles Posted in Agriculture Law
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At issue in this appeal were two issues: (1) whether the judicially created "filed rate doctrine," which typically has been utilized in common carrier and public utility litigation, was applicable in a class action lawsuit seeking monetary and injunctive relief under state law arising from the misreporting of pricing data to the USDA, where the data in turn were used to set a minimum price structure for raw milk sales; and (2) if the doctrine was applicable in that situation, whether the district court erred when it dismissed Plaintiffs' state causes of action on the ground that the filed rate doctrine barred such claims, even though the court found that it was not disputed that the USDA determined that the rates calculated were erroneous and that other rates should have applied based on correct pricing inputs. The plaintiffs here were dairy farmers who sold raw milk that was priced according to the erroneous reports. The Ninth Circuit Court of Appeals reversed and remanded, holding that the district court properly determined that the filed rate doctrine applied to the minimum milk pricing program, but erred by concluding that the doctrine applied to bar the plaintiffs' state-law claims in this case. View "Carlin v. DairyAmerica, Inc." on Justia Law

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Whoever “invents or discovers and asexually re-produces any distinct and new variety of plant, including cultivated sports, mutants, hybrids, and newly found seedlings, other than a tuber propagated plant or a plant found in an uncultivated state, may obtain a patent therefor,” 35 U.S.C. 161. In 1980, Beineke noticed two white oak trees with superior genetic traits, such as excellent timber quality and strong central stem tendency. The trees were in the yard of another and about 105-118 years old. Beineke planted acorns from each. An examiner rejected patent applications because Beineke did not provide evidence that the trees were in a cultivated state. The Board affirmed, finding that the land on which the trees grew had existed as a wooded pasture until a house was constructed around 1930, after the trees began growing; there was no evidence that human activity contributed to the creation of the trees. The Federal Circuit affirmed, without addressing cultivation. Congress recognized that the relevant distinction was not between living and inanimate things, but between products of nature, whether living or not, and human-made inventions.” The trees were not “newly found seedlings,” and do not fall within the broadened protection of the 1954 amendments. View "In re Beineke" on Justia Law

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The Johnsons, organic farmers, claimed that while Appellant, a cooperative, was spraying pesticide onto conventionally farmed fields adjacent to the Johnsons' fields, some pesticide contaminated the Johnsons' organic fields. The Johnsons sued Appellant on theories including trespass, nuisance, and negligence per se, seeking damages and injunctive relief. The district court granted summary judgment to Appellant and dismissed all of the Johnsons' claims. The court of appeals reversed. The Supreme Court (1) concluded that the Johnsons' trespass claim and claim for damages based on 7 C.F.R. 205.202(b) failed as a matter of law, and therefore, reversed the court of appeals' reinstatement of those claims; and (2) held that the district court failed to consider whether the Johnsons' non trespass claims that were not based on section 205.202(b) could survive summary judgment, and therefore, affirmed the court of appeals' reinstatement of those claims. Remanded. View "Johnson v. Paynesville Farmers Union Coop. Oil Co." on Justia Law

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In 1978, Hages acquired a ranch in Nevada occupying approximately 7,000 acres of private land and approximately 752,000 acres of federal lands under grazing permits. Their predecessors had acquired water rights now located on federal lands, 43 U.S.C. 661. Hages had disputes with the government concerning release of non-indigenous elk onto federal land for which Hages had grazing permits, unauthorized grazing by Hages’ cattle, and fence and ditch maintenance. After a series of incidents, in 1991, Hages filed suit alleging takings under 43 U.S.C. 1752(g), and breach of contract. After almost 20 years, the Claims Court awarded compensation for regulatory taking of water rights; physical taking of water rights; and range improvements. The court awarded pre-judgment interest for the takings, but not for the range improvements. The Federal Circuit vacated in part. The regulatory takings claim and 43 U.S.C. 1752 claim are not ripe. To the extent the claim for physical taking relies on fences constructed 1981-1982, it is untimely. To the extent the physical takings claim relies on fences constructed 1988-1990, there is no evidence that water was taken that Hages could have put to beneficial use. Hages are not entitled to pre-judgment interest for range improvements because Hages failed to identify a cognizable property interest. View "Hage v. United States" on Justia Law

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The National Chicken Council, National Meat Association, and National Turkey Federation petitioned for review of EPA's interpretation of a provision in the Energy Independence and Security Act of 2007. The EPA interpreted the provision to mean that certain ethanol plants fired with natural gas and/or biomass were deemed to be in compliance with a reduction requirement indefinitely rather than for a certain period. Petitioners argued that by permitting qualifying ethanol plants to generate Renewable Identification Numberss indefinitely without having to ensure their ethanol met the emissions-reduction requirement, the ethanol plants would produce more ethanol, which would lead to an increase in the demand for corn, which would lead to an increase in the price of corn. The D.C. Circuit Court of Appeals dismissed Petitioner's petition for review for lack of standing, as Petitioners failed to show that a favorable ruling would redress their claimed injuries. View "Nat'l Chicken Council v. EPA " on Justia Law

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This declaratory judgment action concerned a controversy over the limits of an insurance policy issued by Insurer to Insured. A livestock company (Company) brought suit in Minnesota state court against Insured after Company's cattle in Insured's care died in unusually high numbers. Insured submitted the complaint in the underlying action to Insurer. Insurer refused to defend or indemnify Insured in the case brought by Company, basing its denial of coverage on an exclusion in the liability insurance policy for damage to property in the "care, custody, or control" of the insured. The Minnesota district court entered judgment against Insured. Insurer then commenced this action against Company and Insured in federal district court, seeking a declaratory judgment that the claims alleged in the underlying action were not covered under Insured's policy with Insurer and that Insurer therefore had no obligation to defend or indemnify Insured. The district court concluded that the claims were covered by the policy and granted Company and Insured's motion for summary judgment. The Eighth Circuit Court of Appeals reversed, holding that because Company's cattle were under Insured's care, custody, and control when they were damaged, the policy did not provide coverage for Company's claimed loss. Remanded. View "Grinnell Mut. Reinsurance v. Schwieger" on Justia Law

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Wescott Agri-Products, Inc., a Perishable Agricultural Commodities Act (PACA)-licensed wholesale supplier of perishable agricultural commodities, sold produce to a company that later ceased business operations after Sterling State Bank seized the company's assets because it failed to make scheduled loan payments. Wescott demanded payment from the bank, claiming the bank had seized assets subject to trust under the PACA, but the bank refused. Wescott sued the bank, asserting various claims, including violations of the PACA and a conversion claim. The district court granted the bank summary judgment on Wescott's conversion claim and summary judgment in favor of Wescott on its PACA claim. Wescott then appealed the district court's denial of attorney fees on costs. The Eighth Circuit Court of Appeals affirmed, holding that the district court did not abuse its discretion by refusing to award Wescott attorney fees and costs, as the fees were excessive and unreasonable, and Wescott's unprofessional conduct in the case did not warrant an award of fees. View "Wescott Agri-Products, Inc. v. Sterling State Bank" on Justia Law

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Most of the world's reserves of potash, a mineral used primarily in fertilizer, are in Canada, Russia, and Belarus. Defendants are producers with mines in those countries. Plaintiffs are direct and indirect potash purchasers in the U.S. They allege that producers operated a cartel through which they fixed prices in Brazil, China, and India, and that inflated prices in those markets influenced the price of potash in the U.S. Defendants moved to dismiss, arguing that the district court lacked jurisdiction under the Foreign Trade Antitrust Improvements Act, 15 U.S.C. 6a. The district court denied the motion. The Seventh Circuit affirmed. The world market for potash is highly concentrated and U.S. customers account for a high percentage of sales. This is not a “House-that-Jack-Built situation in which action in a foreign country filters through many layers and finally causes a few ripples” in the U.S. Foreign sellers allegedly created a cartel, took steps outside the U.S. to drive the price up of a product that is wanted in the U.S., and, after succeeding, sold that product to U.S. customers. The payment of overcharges by those customers was objectively foreseeable, and the amount of commerce is substantial. View "Minn-Chem, Inc. v. Agrium, Inc." on Justia Law

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After it was discovered that the American long-grain rice supply was contaminated with genetically modified rice developed by Bayer Holding, Inc., all of the federal lawsuits against Bayer were centralized in the U.S. District Court for the Eastern District of Missouri (MDL court). The MDL court appointed Appellees as a leadership group to coordinate pretrial preparations for the federal litigation. Appellants filed a complaint against Bayer, and the jury awarded Appellants $532,643 in compensatory damages and $500,000 in punitive damages. Before the entry of judgment, Appellees filed a motion to intervene seeking to collect eleven percent of Appellants' total recovery for placement in a common fund established to compensate the leadership group for its efforts. The court granted the complaint in intervention. On reconsideration, the circuit court adhered to its ruling creating a common-benefit fund in favor of Appellees. Appellants appealed. The Supreme Court dismissed the appeal without prejudice for the lack of a proper certification under Ark. R. Civ. P. 54(b), as the order being appealed was not final. View "Kyle v. Gray Ritter & Graham P.C." on Justia Law

Posted in: Agriculture Law
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Plaintiffs, groups of investors who purchased the securities of KV, brought this class action lawsuit alleging that KV and some of its individual officers committed securities fraud. Plaintiffs alleged that KV made false or misleading statements about its compliance with Food and Drug Administration (FDA) regulations governing the manufacture of pharmaceutical products, and made false or misleading statements about earnings resulting from pharmaceutical products allegedly manufactured in violation of FDA regulations. The court concluded plaintiffs' complaint adequately set forth the reasons why KV's statements about is compliance were false, or at least misleading, at the time they were made; the district court did not err when it determined the investors' complaint did not sufficiently plead that KV made false or misleading statements about earnings tied to the manufacture of generic Metoprolol; the district court correctly dismissed the scheme liability claims against the two individual KV officers; but the district court erred in denying the motion to amend the complaint. Accordingly the court affirmed in part, reversed in part, and remanded for further proceedings. View "Public Pension Fund Group, et al. v. KV Pharmaceutical Co., et al." on Justia Law