Justia Agriculture Law Opinion Summaries

In February 2014, Clint Shalla entered into a debt settlement agreement with Greg and Heather Koch to prevent a foreclosure on his farm. The Kochs agreed to purchase the farm and give Clint an exclusive option to repurchase it by August 15, 2015, with written notice and financing commitment. Clint's wife, Michelle, was not a party to the agreement but conveyed her marital interest in the property. Clint sought financing from Christopher Goerdt, then president of Peoples Trust and Savings Bank, who allegedly agreed to secure financing. Clint missed the option deadline, and the Kochs later agreed to sell the farm for a higher price. Goerdt, who had moved to County Bank, secured financing for the Shallas, but was later found to be involved in fraudulent activities.The Iowa District Court for Washington County granted partial summary judgment in favor of Peoples Bank, dismissing Michelle's fraudulent misrepresentation claim. The court later reconsidered and dismissed the Shallas' negligence and fraudulent misrepresentation claims, citing Iowa Code section 535.17. The court ruled in favor of County Bank in the foreclosure action and found Goerdt liable for conversion. The Shallas appealed, and the Iowa Court of Appeals affirmed the district court's judgment, with a dissent on the application of the statute of frauds.The Iowa Supreme Court reviewed the case and affirmed the lower courts' decisions. The court held that Iowa Code section 535.17, the credit agreement statute of frauds, barred the Shallas' claims for negligence and fraudulent misrepresentation. The court concluded that the statute applies to all actions related to unwritten credit agreements, regardless of whether the claims are framed in contract or tort. The case was remanded to the district court for a determination of County Bank's attorney fees, including appellate attorney fees. View "County Bank v. Shalla" on Justia Law

Kevin Jucht and Nathan Schulz are neighboring farmers. Jucht sued Schulz, alleging that Schulz's chemical spray drifted onto Jucht's property, damaging his soybeans. Jucht reported the incident to the South Dakota Department of Agriculture and Natural Resources (DANR) and subsequently filed a lawsuit against Schulz for negligence, strict liability, trespass, and nuisance, seeking actual and punitive damages. Schulz moved to dismiss the case, arguing that Jucht failed to provide the statutory notice required under SDCL 38-21-46.The Circuit Court of the First Judicial Circuit, McCook County, granted Schulz's motion to dismiss. The court concluded that Jucht's failure to provide the notice required by SDCL 38-21-46 barred him from seeking recovery for the alleged damages. Jucht appealed the decision, arguing that the lack of notice should not bar his cause of action.The Supreme Court of the State of South Dakota reviewed the case and reversed the circuit court's decision. The Supreme Court held that while SDCL 38-21-46 requires a person claiming damages from pesticide use to notify the applicator, failure to provide such notice does not automatically bar the claimant from bringing their claim. Instead, a claimant is barred from seeking recovery under SDCL 38-21-47 only if they fail to allow the applicator to inspect the alleged damage. The court emphasized that the purpose of the notice is to enable timely inspection by the applicator. The Supreme Court remanded the case for further proceedings to determine the nature and timing of the notice Schulz received and whether he was given the opportunity to inspect the damage. View "Jucht v. Schulz" on Justia Law

In October 2014, while guiding a hunting party on their property, the Olsens' son observed a crop duster spraying herbicide, which allegedly damaged the Olsens' ponderosa pine trees. The Olsens claimed the herbicide caused significant damage and death to the trees. They filed a lawsuit against the Defendants, who argued that expert testimony was required to prove causation. The circuit court granted summary judgment in favor of the Defendants, leading to the Olsens' appeal.The Circuit Court of the Fifth Judicial Circuit in Spink County, South Dakota, reviewed the case. The court found that without expert testimony, a jury would be left to speculate about the cause of the damage to the trees. The court noted that the fields of chemistry, botany, and agronomy were beyond the understanding of a typical layperson. Consequently, the court granted summary judgment, dismissing the Olsens' complaint in its entirety.The Supreme Court of South Dakota reviewed the appeal. The court affirmed the circuit court's decision regarding the need for expert testimony to establish causation for the damage to the trees. However, it reversed the summary judgment on the claims of trespass, statutory nuisance, and common law nuisance, noting that these claims do not require proof of damages to survive summary judgment. The court remanded these claims for further proceedings, allowing the Olsens to potentially recover nominal damages. The court affirmed the summary judgment on the claims of promissory estoppel and civil conspiracy due to the lack of evidence on causation for damages. View "Estate of Olsen v. Agtegra Cooperative" on Justia Law

The Vagts family, who own and operate a dairy farm in West Union, Iowa, filed a nuisance suit against Northern Natural Gas Company (NNG). NNG operates a natural gas pipeline that runs under the Vagts' property and uses a cathodic protection system, which runs an electrical current through the pipeline to prevent corrosion. The Vagts alleged that stray voltage from the cathodic protection system distressed their dairy herd and caused them damages. The jury awarded the Vagts a total of $4.75 million in damages. NNG appealed, arguing that the district court erred in instructing the jury on nuisance without including negligence as an element of the claim and in denying NNG’s motion for remittitur.The district court held that negligence was not an element of the nuisance claim and instructed the jury accordingly. The jury found that the stray voltage from the cathodic protection system was definitely offensive, seriously annoying, and intolerable, that the stray voltage interfered with the Vagts’ normal use of land in the local community, and that this constituted a nuisance. The jury awarded the Vagts $3 million in economic damages, $1.25 million for personal inconvenience, annoyance, and discomfort, and $500,000 for the loss of use and enjoyment of land.On appeal, the Supreme Court of Iowa affirmed the district court's decision. The court held that under the controlling statute and precedents, negligence is not an element of a nuisance claim. The court also held that the district court did not abuse its discretion in declining to disturb the jury's verdict on damages. The court concluded that the jury's verdict was supported by the record when viewed in the light most favorable to the plaintiffs. View "Vagts v. Northern Natural Gas Company" on Justia Law

A nuisance lawsuit was brought by neighbors against two poultry farms located on a single tract of rural land in Henderson County, southeast of Dallas. The neighbors claimed that the odors from the farms were a nuisance, causing them discomfort and annoyance. A jury found that the odors were a temporary nuisance and the trial court granted permanent injunctive relief that effectively shut down the farms. The farm owners and operators appealed, challenging the injunction on three grounds: whether the trial court abused its discretion in finding imminent harm; whether equitable relief was unavailable because damages provide an adequate remedy; and whether the scope of the injunction is overly broad.The Supreme Court of Texas upheld the trial court’s authority to grant an injunction, rejecting the first two challenges. However, the court concluded that the trial court abused its discretion in crafting the scope of the injunction, which was broader than necessary to abate the nuisance. The court therefore reversed in part and remanded for the trial court to modify the scope of injunctive relief. View "HUYNH v. BLANCHARD" on Justia Law

The case involves a dispute between Mary Roth and Gary Meyer, who were in a long-term relationship but never married. They cohabitated and ran a cattle operation together on a property that had a complex ownership history involving various members of Meyer's family. The couple's relationship ended, and Roth sued Meyer, alleging that he had converted some of her cattle and failed to repay loans she had given him.The District Court of Grant County, South Central Judicial District, found in favor of Roth. It ruled that Meyer had gained title to the disputed property through adverse possession and had transferred it to Roth in 2010. The court also found that Meyer had converted 13 of Roth's cattle and breached oral loan agreements with her, ordering him to pay her $52,500.On appeal, the Supreme Court of North Dakota reversed the lower court's decision. It found that the lower court had erred in its findings on adverse possession, the admissibility of certain evidence, the timing of the alleged conversion of cattle, the valuation of the converted cattle, and the enforceability of the loan contracts. The Supreme Court remanded the case to the lower court for further proceedings, instructing it to make new findings based on the existing record. View "Roth v. Meyer" on Justia Law

The case revolves around a dispute between Dirt Road Development LLC (DRD) and Robert and Kathryn Hirschman over the construction and operation of a new feedlot in Howard County, Nebraska. The Hirschmans own several properties in the county where they operate feedlot facilities. They planned to construct and operate a new feedlot on a property that is separated from their existing feedlots by a quarter section of land owned by a third party. DRD, which owns a property near the proposed new feedlot, filed a lawsuit seeking to prevent the Hirschmans from constructing and operating the new feedlot without obtaining a conditional use permit from the Howard County Board of Commissioners.The District Court for Howard County heard the case initially. The court had to determine whether, under Howard County’s zoning regulations, the Hirschmans' new feedlot was “adjacent” to their existing livestock operations. If so, the regulations required the Hirschmans to obtain a conditional use permit before constructing and operating the new feedlot. The district court concluded that the new feedlot was adjacent to the Hirschmans’ other feedlots and that therefore, the Hirschmans were required to obtain a conditional use permit to build and operate the new feedlot. The court granted DRD’s motion for summary judgment and denied the Hirschmans’ motion.The Hirschmans appealed the decision to the Nebraska Supreme Court. They argued that the district court erred in holding that under the Howard County zoning regulations, their new feedlot was adjacent to their other feedlots and constituted a single commercial livestock operation rather than a separate feedlot. The Nebraska Supreme Court affirmed the district court's decision, agreeing that the term "adjacent" as used within the zoning regulations is unambiguous and that the Hirschmans were required to obtain a conditional use permit for their new feedlot. View "Dirt Road Development v. Hirschman" on Justia Law

The case involves Aerie Point Holdings, LLC (Aerie Point) and Vorsteveld Farm, LLC (Vorsteveld). Aerie Point owns a property in Panton, Vermont, which is located downhill from Vorsteveld's dairy farm. In 2017, Vorsteveld began installing tile drains in its fields to improve soil quality. The excess water drained from these tiles was discharged into public ditches, then through culverts, and finally towards Lake Champlain over Aerie Point’s property. This led to increased water flow, sediment, and contaminants on Aerie Point's land, causing shoreline erosion and algae blooms in Lake Champlain. In April 2020, Aerie Point filed a lawsuit against Vorsteveld for trespass and nuisance.The civil division found in favor of Aerie Point in March 2022, concluding that Vorsteveld's actions constituted trespass and nuisance. The court issued an injunction in August 2022, preventing Vorsteveld from allowing water from its drain tile system to flow into the public ditches and culverts on Arnold Bay Road. Vorsteveld did not appeal this judgment.In August 2023, Vorsteveld moved for relief from the judgment under Rule 60(b)(5) and (6), arguing that postjudgment changes in fact and law justified relief from the injunction. Vorsteveld claimed that an Environmental Protection Agency (EPA) investigation regarding filled wetlands on the farm prevented it from complying with the injunction, and that the federal investigation/enforcement action preempted the state injunction. Vorsteveld also argued that changes to Vermont’s Right-to-Farm law justified relief from the injunction. The court denied the motion and the request for an evidentiary hearing.On appeal, the Vermont Supreme Court affirmed the lower court's decision. The court found that Vorsteveld's arguments were attempts to relitigate issues that had been resolved by the judgment. The court also found that Vorsteveld had not demonstrated that there were significant postjudgment changes in factual circumstances or the law that made prospective application of the injunction inequitable. The court concluded that Vorsteveld's arguments relating to the EPA investigation and changes to the Right-to-Farm law were insufficient to merit relief under Rule 60(b). The court also found that the trial court did not abuse its discretion in denying Vorsteveld's request for an evidentiary hearing. View "Aerie Point Holdings, LLC v. Vorsteveld Farm, LLC" on Justia Law

The case involves J and L Farms, Inc. (J&L), a South Dakota company, and First Bank, a Florida banking corporation. J&L had an ongoing business relationship with Jackman Wagyu Beef, LLC (Jackman), a Florida-registered company, where Jackman would purchase cattle from J&L. In 2018, Jackman proposed a change in their payment terms, offering to pay for the cattle within 30 days of placing an order, instead of paying prior to the cattle being shipped. To secure each payment, Jackman proposed that J&L would be given a bank guarantee from First Bank. First Bank issued three separate guaranty letters to J&L to secure payment for the sale of cattle. However, Jackman failed to provide full payment for two orders, and First Bank refused to satisfy the outstanding balance.The circuit court of the Fifth Judicial Circuit in Brown County, South Dakota, entered a default judgment against Jackman after it failed to plead or defend against J&L’s complaint. First Bank filed a motion to dismiss for lack of personal jurisdiction, arguing that it did not have sufficient minimum contacts for a South Dakota court to exercise personal jurisdiction over it. The circuit court denied the motion.The Supreme Court of the State of South Dakota affirmed the circuit court's decision. The Supreme Court found that First Bank had sufficient minimum contacts with South Dakota to establish personal jurisdiction. The court reasoned that First Bank purposefully availed itself of the privileges of acting in South Dakota by issuing three guaranty letters to J&L, a South Dakota company, to facilitate the purchase of South Dakota cattle. The court also found that the cause of action against First Bank arose from its activities directed at South Dakota, and that the acts of First Bank had a substantial connection with South Dakota, making the exercise of jurisdiction over First Bank reasonable. View "J&l Farms" on Justia Law

An elderly woman, Janice Geerdes, and her long-time friend, Albert Gomez Cruz, had a partnership raising hogs on a piece of land. Initially, Janice deeded half of her interest in the land to Albert. Over a decade later, she deeded the rest of her interest in the land to Albert, receiving nothing in return. About six months later, Janice’s adult daughters were appointed her conservator and guardian. The conservator challenged the validity of the quitclaim deed based on undue influence and lack of capacity.The district court set aside the deed, finding that there was undue influence through a confidential relationship and that Janice lacked the necessary capacity to deed her interest in the land. The court of appeals affirmed the decision on the basis of lack of capacity.The Supreme Court of Iowa, however, disagreed with the lower courts. The Supreme Court found that the conservator did not establish by clear, convincing, and satisfactory evidence that there was undue influence or that Janice lacked capacity at the time of the gift. The court found that the lower courts gave too much weight to the perceived improvidence of the transaction and too little weight to the testimony of the third-party accountant who witnessed the transaction. Therefore, the Supreme Court vacated the decision of the court of appeals, reversed the district court judgment, and remanded for further proceedings. View "Conservatorship of Janice Geerdes v. Cruz" on Justia Law