Justia Agriculture Law Opinion Summaries

Articles Posted in Insurance Law
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At issue in this appeal was a statutory scheme that dictates how to calculate farmers' crop insurance policies. Determining that it had jurisdiction over the appeal, the Fifth Circuit held that farmers were permitted to exclude the historical data for the 2015 crop year, even though the FCIC had not completed its data compilation. In this case, the FCIC has not provided any textual or contextual clues that would cast doubt on the plain language of the Federal Crop Insurance Act, 7 U.S.C. 1508(g)(4). Therefore, the farmers prevailed at Chevron step one. View "Adkins v. USDA" on Justia Law

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The Eighth Circuit affirmed the district court's grant of summary judgment deferring to an insurance policy interpretation made by the FCIC and a determination regarding the FCIC's authority made by the RMA. The court held that the clear language of the Federal Crop Insurance Act indicated that Congress intended the Corporation to have extensive and broad authority; given the FCIA's broad grant of authority to the Corporation, and the specific authority over the provisions of insurance and insurance contracts found in 5 U.S.C. 1505 and 1506, substantial deference was given to the FCIC's interpretation of the special provision; and, considering the plain language of the insurance contract and the deference given to the RMA in its role of supervisor of the FCIC, the RMA's determination that the FCIC was required to provide an interpretation of the special provision to the arbitrating parties was not clearly erroneous. View "Bottoms Farm Partnership v. Perdue" on Justia Law

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From 2006-2012 Packerland deceived at least one of its customers about the protein content of its Whey Protein Concentrate. Land O’Lakes purchased Packerland’s protein concentrate for use in making foods for calves and other young animals. Buyers infer protein levels from measuring nitrogen: a seller can add another nitrogen-rich substance to produce higher scores. The Ratajczaks, who owned Packerland, started adding urea to its protein concentrate. in 2006. Land O’Lakes suspected that the concentrate was high in nonprotein nitrogen but could not learn why; the Ratajczaks made excuses that Land O’Lakes accepted. The Ratajczaks sold Packerland in 2012. The new owner kept them as employees; they kept adding urea until the buyer learned what the truth. The Ratajczaks lost their jobs and settled for about $10 million before the buyer filed a complaint. Land O’Lakes stopped buying Packerland’s product and asserted claims of breach of contract, fraud, and violation of the Racketeer Influenced and Corrupt Organizations Act. Packerland’s insurers refused to defend or indemnify it or the Ratajczaks; the Ratajczaks’ personal insurer refused to indemnify them for their settlement with Packerland’s buyer. The district court dismissed Land O’Lakes’s suit and ruled in favor of the insurers. The Seventh Circuit affirmed, rejecting Land O’Lakes’ claim to treble damages under RICO and state-law and the Ratajczaks’ claims that Packerland’s insurers and their own insurers had to defend and indemnify them. View "Land O'Lakes, Inc. v. Ratajczak" on Justia Law

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Fred and Tina Preisler operated a dairy farm and raised cattle. The Preislers hired Kuettel’s Septic to apply septage, which is primarily composed of human urine and fecal material, to their farm fields. The Preislers subsequently experienced problems with their well water. The Preislers sued Kuettel’s Septic, other defendants, and their insurers, alleging, among other claims, negligence in storing and in applying septage resulting in nuisance and trespass. The circuit court granted summary judgment for the insurers, concluding that a pollution exclusion clause precluded coverage for harm resulting from the Preislers’ water supply’s contamination. The court of appeals affirmed. The Supreme Court affirmed, holding that “a reasonable insured would understand that decomposing septage is a ‘contaminant’ and therefore a ‘pollutant’ as defined in the policies when it has decomposed and seeps into a water supply.” View "Preisler v. Kuettel's Septic Serv., LLC" on Justia Law

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In 2011, Robert and Jane Falk spread liquid cow manure onto their farm fields for the purpose of fertilization. The manure leeched into and contaminated the wells of the Falks’ neighbors. Wilson Mutual Insurance Company, the Falks’ insurer, filed a declaratory judgment motion claiming it did not have a duty to defend or indemnify the Falks against allegations that they negligently spread manure on their property and thereby polluted their neighbors’ wells. The circuit court granted the motion, concluding that the Wilson Mutual policy issued to the Falks contained an exclusion for pollution and that manure is unambiguously a pollutant. The court of appeals reversed, concluding that manure is not a pollutant because, to a reasonable farmer, manure is “liquid gold.” The Supreme Court reversed, holding that the pollution exclusion in the policy unambiguously excludes coverage for well contamination caused by the seepage of cow manure. View "Wilson Mut. Ins. Co. v. Falk" 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