Articles Posted in North Carolina Supreme Court

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Defendant may not enforce several limitation of remedies clauses against Plaintiffs, several commercial farmers in North Carolina, in defense of lawsuits premised on Defendant’s distribution of allegedly mislabeled tobacco seed. Defendant was in the business of breeding, developing, and producing tobacco seeds. Plaintiffs filed suits that were eventually consolidated alleging that Defendant had sold them mislabeled, certified tobacco seed for planting. Defendant argued in response that in accordance with the limitation of remedies clause on each container of seed, Plaintiffs’ alleged damages were “limited to repayment of the purchase price of the seed.” The Business Court denied Defendants’ motions for partial summary judgment on the grounds that limitation of remedies clauses appearing on the labels of mislabeled seed must fail by virtue of public policy, as expressed by the General Assembly in the North Carolina Seed Law of 1963, to protect farmers from the potentially devastating consequences of planting mislabeled seed. The Supreme Court affirmed, holding that Defendant’s limitation of remedies clauses were unenforceable against Plaintiffs. View "Kornegay Family Farms LLC v. Cross Creek Seed, Inc." on Justia Law