In re Pilgrim's Pride Corporation, No. 08-45664 (DML), 2011 Bankr. LEXIS 960 (Bankr. N.D. Tex. Mar. 24, 2011)

(debtor's motion for judgment on partial findings granted; debtor did not violate Sec. 192(a) of the Packers and Stockyards Act when, after acquiring Gold Kist, it offered contract growers (one year after acquisition) new contracts containing language allowing debtor to terminate a grower's contract for "economic necessity"; contract provision in writing with terms and conditions identical in contracts offered to all growers, and grower had opportunity to review contracts and take them to legal counsel before signing; to establish violation of Sec. 192(a), growers must establish that debtor engaged in misrepresentation or other unfair practice with the result of producing an anticompetitive effect; if those two elements established, debtor excused from violating Sec. 192(a) by showing evidence of independent, legitimate business reason beneficial to competition; growers not able to show any unfair or deceptive act; "economic necessity" language in contract is valid and enforceable and gave debtor greater flexibility to respond to changes in highly competitive market; in any event, debtor had independent legitimate business reason for having growers enter into new contracts - to improve efficiency and provide growers with a pay raise).

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