"Fix and Flip" Cow Operation Not Entitled To Business Interruption Damages or Punitive Damages for Defective Feed.

The plaintiffs buy bred heifers sell the cows as soon as possible after calving and then feed the calves for a while before selling the calves, hopefully at a profit.  The calves were not kept for breeding purposes, and the plaintiffs would simply start the process over the next year.  The plaintiffs ordered "creep feed" mixed with Rumensin from the defendant that was placed in creep feeders with the calves.  The calves showed signs of respiratory distress with numerous calves eventually dying.  The toxicology report on two of the calves showed toxic levels of Rumensin.  In total, 23 calves died.  The plaintiffs weaned and fed out the remaining 170 calves and sold them at auction with a disclaimer that they had been fed excess Rumensin and were sold "as is."  The plaintiffs then sued the defendant for negligence, breach of implied warranty of fitness for a particular purpose, and breach of a voluntarily assumed duty.  The plaintiffs also claimed that the defendant was strictly liable for the resulting damages from a hazardous and dangerous feed condition.  The trial court rejected all of the plaintiffs' claims except that based on breach of implied warranty and awarded damages of $164,072.54.  The court also denied the plaintiffs an award of attorney fees.  The plaintiffs appealed on the basis that the award was insufficient to make them whole for failure to award business interruption damages based on lost profits.  However, the appellate court refused to award such damages, noting that in order to recover lost profits on such a theory, there must first be an on-going business with an established sales record and a proven ability to realize profits at the established rate with proof of actual profits for a reasonable time before the breach.  Here, the appellate court determined that the plaintiffs were merely speculating in the calf market and did not have a cattle operation analogous to the swine operation in Ballard v. Amana Society, 526 N.W.2d 558 (Iowa 1995).  The appellate court also denied punitive damages on the basis that the defendant's conduct was not willful and wanton and was without malice, but that errors occurred due to extenuating, non-malicious factors.  The appellate court also upheld the trial court's denial of attorney fees for lack of wanton conduct on the defendant's part.  The court also denied additional damages based on an alleged mistake in the damages calculation because the claim was not raised in the plaintiffs' post-trial motion.  Swanson v. R & B Feeds, L.L.C., No. 14-1823 (Iowa Ct. App. Nov. 25, 2015).