Ag Law Case Annotations

Cate v. Woods, No. 06-09-00014-CV, 2009 Tex. App. LEXIS 8125 (Tex. Ct. App. Oct. 21, 2009)(trial court erred in granting specific performance of land sale contract; no written contract in existence that expressed essential contract terms; no fraud by "seller" because no contract in existence; no trespass by "seller" because "seller" was owner of property).

Archer Daniels Midland Co. v. Soucie, No. 4:08CV3215, 2009 U.S. Dist. LEXIS 87640 (D. Neb. Sept. 23, 2009)(plaintiff failed to show, by preponderance of the evidence, that enforceable contract existed between parties for sale of 25,000 bushels of soybeans pursuant to hedge-to-arrive contract; plaintiff failed to timely send confirmatory memo memorializing telephone conversation, and defendant did not admit existence of contract).

Crop Production Services, Inc. v. Layton, et al., No. 1:09-CV-401-WKW [WO], 2009 U.S. Dist. LEXIS 78639 (M.D. Ala. Sept. 1, 2009)(case involves plaintiff's action against defendant for alleged nonpayment of debts owed for purchase of farm supplies under credit agreement; default judgment not granted and case proceeded to merits of plaintiff's motion for summary judgment, which was denied - dispute remained over validity of 2007 credit agreement, differences present over affidavits of plaintiff's credit manager, and only limited discovery had taken place).

Cody v. Arnett, et al., No. CIV-08-439-SPS, 2009 U.S. Dist. LEXIS 78553 (E.D. Okla. Sept. 1, 2009)(case involves suit over alleged misrepresentations in connection with cattle purchases made from livestock auction in Kentucky; case transferred to Eastern District of Kentucky - defendants had insufficient contacts with Oklahoma to be subject to jurisdiction in Oklahoma.

Timmerman, et al. v. The Grain Exchange, LLC, et al., No. 5-08-0404, 2009 Ill. App. LEXIS 791 (Ill. Ct. App. Aug. 21, 2009)(forward grain contracts rendered unenforceable when defendant's license to deal in grain was revoked making it illegal for the defendant to take delivery of the grain under the contracts and making assignments of the contracts to the assignees ineffective; arbitration clause of National Grain and Feed Association invalidated as unconscionable).

Borel, et al. v. St. Clair, No. C058908, 2009 Cal. App. Unpub. LEXIS 6594 (Cal. Ct. App. Aug. 14, 2009)(defendant liable to plaintiff on contract theory for damages caused by negligently performed labor when installing wind and solar generating systems on plaintiff's ranch).

Central Livestock Association, Inc., et al. v. R & J Dairy, et al., No. 08-155 (JNE/JJG), 2009 U.S. Dist. LEXIS 72697 (D. Minn. Aug. 14, 2009)(contract case involving alleged breach of livestock feeding contracts).

Magnolia Enterprises, LLC v. Schons, et al., No. CV-08-376-N-BLW, 2009 U.S. Dist. LEXIS 49262 (D. Idaho Jun. 11, 2009)(right of first refusal is an interest in real property that is subject to the statute of frauds; right of first refusal involved in real estate transaction did not contain adequate legal description - plaintiff not entitled to summary judgment).

Wagner v. Reuter, No. S-08-0142, 2009 Wyo. LEXIS 73 (Jun. 8, 2009)(contract for compensation of field work performed before sale of farm upheld and buyer determined to be in breach for failure to negotiate compensation as required by contract terms; genuine issue of material fact remains as to amount of compensation required; but, defendant did not commit conversion of plaintiff's irrigation tubes which plaintiff left on the premises after the contractually-required date for removing them).

Lewis v. Kansas Production Company, Inc., et al., No. 98,859, 2009 Kan. App. LEXIS 5 (Kan. Ct. App. Jan. 16, 2009)(oil and gas lease containing implied covenant of exploration and development could not be cancelled for non-development without demand for compliance; neither abandonment nor forfeiture of lease present).

Chieftain International (U.S.) Inc., et al. v. Southeast Offshore, Inc., No. 07-31043, 2008 U.S. App. LEXIS 26430 (5th Cir. Dec. 19, 2008)(defendant, owner of fractional interest in an oil and gas lease, found liable for $5.8 million in unpaid fees incurred by the operator of the underwater oil and gas exploration operation, which paid operation costs up front for all fractional owners; operator did not affirmatively release defendant from obligations under the parties’ joint operating agreements before defendant assigned its rights to a third party).

Mathews v. Mathews, No. 43,806-CA, 2008 La. App. LEXIS 1689 (La. Ct. App. Dec. 17, 2008)(mother’s sale of farmland to a son for no consideration is a nullity and not a disguised donation, as is subsequent donation of land by son to a cousin).

Deer Field Hunting Club, Inc. v. Swayze Plantation, L.L.C., No. 08- 313, 2008 La. App. LEXIS 1607 (La. Ct. App. Dec. 11, 2008)(trial court’s denial of tenant’s request for issuance of permanent injunction that would restrain landowner from harvesting timber and conducting clearing operations on leased premises upheld; lease gave landlord retained right to use and develop premises for “other” purposes; tenant knew at time leased signed that future logging a possibility; and logging activity would actually enhance hunting value of property to tenant).

Miller v. Miller, No. A-08-247, 2008 Neb. App. LEXIS 243 (Neb. Ct. App. Dec. 2, 2008) (ownership agreement involving ranch not an enforceable contract; agreement ambiguous and lacked mutuality of obligation; extrinsic evidence did not support existence of enforceable contract).

Brown, Ltd, et al. v. Sheppard, No. 06-0845, 2008 Tex. LEXIS 1000 (Tex. Sup. Ct. Nov. 21, 2008)(oil well lease contained in pool of producing properties expired and legal issue was whether expiration of lease removed the minerals from the pool and bars costs incurred before termination; trial court determination that is did reversed – pooling agreement did not depend on continuation of underlying leases, and equitable right of reimbursement for improvements not necessarily extinguished by termination of lease).

Bybee Farms LLC, et al. v. Snake River Sugar Company, et al., No. CV- 06-5007-FVS, 2008 U.S. Dist. LEXIS 74537 (E.D. Wash. Sept. 29, 2008)(contract case involving defendant's alleged agreement to buy plaintiffs' shares of patron preferred stock at "reasonable price"; case proceeds to trial on numerous contract issues).

Energy Partners of Montana, LLC v. Montana Department of Natural Resources and Conservation, No. DA 07-0687, 2008 Mont. LEXIS 475 (Mont. Sup. Ct. Sept. 16, 2008)(plaintiff acquired sixteen oil and gas leases at sale by defendant which specified that rental payments for subsequent years were due before the beginning of the next lease year, and specified that leases would terminate unless there was a well currently being drilled, a producing well or a shut-in well; plaintiff failed to pay annual rents before beginning of next lease year and failed to have producing wells, wells that were being drilled or shut-in wells; provision providing for automatic termination of leases upheld).

216 Jamaica Avenue, LLC v. S&R Playhouse Realty Co., No. 07-3967, 2008 U.S. App. LEXIS 18337 (6th Cir. Aug. 27, 2008)("gold clause" in 99-year lease entered into in 1912 upheld requiring rent to be paid in gold coins rather than cash; gold clauses banned in 1933, but became enforceable again via federal legislation in 1977; 1982 assignment of lease obligated defendant to terms of 1912 lease; "meeting of the minds" present where assignment quoted extensively from 1912 agreement).

Swift & Company v. Elias Farms, Inc., No. 07-2466, 2008 U.S. App. LEXIS 18144 (8th Cir. Aug. 25, 2008)(contract action involving contracts with defendants (hog producers) for the supply of hogs; summary judgment against plaintiff on its contract claim and summary judgment against defendnats on their counterclaims for breach of contract and violations of the Minnesota Consumer Fraud Act are affirmed in part as to the counterclaims, but reversed as to the ruling on the contract claim where a "termination " provisions in a portion of the contract was ambiuguous and neither party produced conclusive evidence that dictated one meaning as a matter of law).

Bravo Farms, L.L.C. v. Battin, No. 26550-III, 2008 Wash. App. LEXIS 2062 (Wash. Ct. App. Aug. 21, 2008)(trial court’s denial of specific performance of alleged contract to purchase farmland affirmed; no acceptance of offer to buy land and evidence did not support existence of right of first refusal to purchase subject land – right of first refusal not in writing as required by Statute of Frauds and evidence not presented that parties’ conduct took matter outside the Statute of Frauds).

Yosemite Meat and Locker Service, Inc., No. F052452, 2008 Cal. App. Unpub. LEXIS 5826 (Cal. Ct. App. Jul. 21, 2008)(contract dispute involving hog production contract; assignment clause in contract did not constitute security agreement).

In re Estate of Thompson, No. 20070294, 2008 N.D. LEXIS 142 (N.D. Sup. Ct. Jul. 21, 2008)(son failed to prove that he had oral contract for deed to buy land from his parents based on alleged agreement that son return to farm with parents and would receive farm after parents’ deaths; son’s possession of land consistent with a lease; parent refused to execute written contract; no significant improvements installed).

SE Co-op Service Company v. Hampton, No. 28389, 2008 Mo. App. LEXIS 962 (Mo. Ct. App. Jul. 21, 2008)(contract dispute involving alleged misapplication of fertilizer by plaintiff and refusal to pay by defendant).

Schmitt v. Beekay Development, LLC, et al., No. 3:06-cv-99-RLY-WGH, 2008 U.S. Dist. LEXIS 51355 (S.D. Ind. Jul. 3, 2008)(foundation to plaintiff’s home “broke” two years after purchase and was condemned; home built on top of abandoned underground coal mine; plaintiff sued home builder, developer of subdivision and subsidiaries of developer on numerous theories; summary judgment granted for defendants on plaintiff’s duty to disclose claim (i.e., constructive fraud) – information regarding presence of underground mines readily available on publicly available websites and plaintiff and purchase agreement (which plaintiff declined to read) disclosed that mining had occurred in the area and that mine subsidence insurance was available (which plaintiff did not purchase); summary judgment for defendant denied on plaintiff’s breach of implied warranty of habitability claim – defendant builder impliedly warranted that the home would be structurally fit for habitation, and defendant developer impliedly represented that the land on which home built was suitable for residential homebuilding; summary judgment granted for defendants on plaintiff’s claim of breach of warranty of quiet enjoyment – plaintiff did not claim she did not receive good title or that title was impaired).

Van Santen v. Van Santen, et al., A07-0899, 2008 Minn. App. Unpub. LEXIS 678 (Minn. Ct. App. Jun. 10, 2008)(trial court’s award of specific performance of option contract for sale of land upheld; option contract not ambiguous and no issues of fact existed as to whether consideration given for option contract).

Moorman v. Blackstock, et al., No. 070988, 2008 Va. LEXIS 76 (Va. Sup. Ct. Jun. 6, 2008)(negotiations for sale of farm involving letters, notes, memoranda, draft agreements and conversations did not satisfy statute of frauds - no mutual agreement to essential contract terms; no equitable estoppel nor part performance).

Field v. Costa, No. 2007-005, 2008 Vt. LEXIS 74 (Vt. Sup. Ct. Jun. 6, 2008)(right-of-first-refusal (ROFR)held by Land Trust in subject farm was condition precedent to purchase agreement in farm entered into between plaintiff and defendant; Land Trust’s exercise of ROFR and subsequent assignment of its interest to neighboring farmer resulted in sale contract never being formed between plaintiff and defendant).

Hornick v. Boyce, No. 07-1040, 2008 U.S. App. LEXIS 12208 (10th Cir. Jun. 6, 2008)(defendant breached option agreement which allowed plaintiff to purchase defendants’ 50 percent interest in Colorado LLC containing 5,000 acres as sole asset; plaintiff entitled to $1.5 million in damages based on plaintiff’s testimony of ranchland value).

Scarff Brothers, Inc., v. Bischer Farms, Inc., No. 04-10071-BC, 2008 U.S. Dist. LEXIS 40132 (E.D. Mich. May 19, 2008)(plaintiff fed cattle at defendant’s feedlot under contract- feeding arrangement, and many came up missing or died; plaintiff then removed remaining cattle; court held that defendant entitled to have plaintiff’s damage award reduced by defendant’s cost of feeding and caring for plaintiff’s remaining cattle before their removal).

American General Financial Services, Inc. v. Carter, No. 98,031, 2008 Kan. App. LEXIS 79 (Kan. Ct. App. May 16, 2008)(real estate foreclosure case involving relative priorities of a lien for unpaid sales tax and later purchase money mortgage given by defaulting taxpayers to acquire the property which is later sold at foreclosure; court held that mortgage given to secure the loan used by taxpayer to buy the property has priority).

Bailey, et al. v. Shell Western E&P, Inc., et al., No. H-05-1029, 2008 U.S. Dist. LEXIS 32888 (D. S.D. Tex. Apr. 22, 2008)(contract dispute involving calculation of royalty payments under oil and gas leases; method used by defendants to calculate royalty payments proper).

Langer v. Bartholomay, 745 N.W. 2d 649 (N.D. Sup. Ct. Feb. 29, 2008)(farm lease case; no breach by tenant in planting beet crop; landowner’s repudiation constituted anticipatory breach).

Black Star Farms v. Oliver, No. CV 05-2650-PHX-MHM, 2008 U.S. Dist. LEXIS 15242 (D. Ariz. Feb. 27, 2008) (plaintiff, a Michigan winery who wanted to ship directly to AZ consumers but was barred by AZ law, brought constitutional challenge based on “dormant” commerce clause; AZ law upheld).