B&L Farms Partnership v. Monsanto Company

CourtDistrict Court, E.D. Missouri
DecidedOctober 14, 2022
Docket4:17-cv-02418
StatusUnknown

This text of B&L Farms Partnership v. Monsanto Company (B&L Farms Partnership v. Monsanto Company) is published on Counsel Stack Legal Research, covering District Court, E.D. Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
B&L Farms Partnership v. Monsanto Company, (E.D. Mo. 2022).

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF MISSOURI SOUTHEASTERN DIVISION

B&L FARMS, et al., ) ) MDL No. 1:18-md-2820-SNLJ Plaintiffs, ) ) Indiv. Case No. 4:17-cv-2418-SNLJ v. ) ) MONSANTO COMPANY, et al., ) ) Defendants. )

MEMORANDUM and ORDER

Plaintiffs are crop growers and an herbicide applicator in Arkansas who filed this lawsuit against defendants Monsanto Company, BASF Corporation, and BASF SE in Arkansas state court. Defendants removed the matter to federal court in Arkansas and then successfully moved to transfer the matter to the Eastern District of Missouri, where the Multi-District Litigation (“MDL”) In re: Dicamba Herbicides Litigation, No. 1:18md2820, was pending. The MDL is now winding down, as most plaintiffs involved in the case have settled with defendants. Because the plaintiffs in this case bring related but substantively different claims against defendants, their claims are not covered by the global settlement entered into by defendants and most plaintiffs involved in the MDL. As a result, litigation in this case has begun again. Defendants have filed motions to dismiss the plaintiffs’ amended complaint [Docs. 95, 97]. The motions have been fully briefed and are ripe for disposition. Factual Background Plaintiffs in the MDL generally alleged that the defendants developed and sold

soybean and cotton seeds resistant to the use of dicamba herbicide, an herbicide intended to kill “broadleaf” weeds. Dicamba has been used for many years, but, because of its volatility and prone to drift off-target, it was used only in the “burndown” or non- growing season for weed control. The defendants are alleged to have designed a “new” dicamba formulation that was marketed as safe to use with dicamba-tolerant (“DT”) seeds during the growing season. But numerous plaintiffs have alleged that the “new”

dicamba continues to be prone to off-target movement. As a result, the MDL plaintiffs say, farmers growing non-dicamba-tolerant crops have suffered injuries. That is largely the fact pattern reflected by most member cases of the MDL. Plaintiffs—crop growers (“grower plaintiffs”) and an herbicide applicator (the “applicator plaintiff”)—have a different complaint. They say, after experiencing crop

losses from off-target dicamba in 2016, they purchased DT seeds to protect against the use of dicamba herbicides by others. But on June 23, 2017, the Arkansas State Plant Board (“ASPB”) banned the use and sale of dicamba in Arkansas effective in July 2017. Plaintiffs allege they were injured because they were unable to use the DT seeds they had purchased. They allege their losses include being charged a “tech fee” of $10 per acre for

the purchase of DT seeds and, for the applicator plaintiff, modifying spray rigs at great cost to apply dicamba—which they were then unable to use. Defendant Monsanto manufactured and sold DT seeds, and both defendants BASF and Monsanto manufactured and sold dicamba that was approved for application over- the-top of DT seeds. Although not alleged in the complaint, Monsanto notes that its “new dicamba” product, Xtendimax, was not approved for sale in Arkansas in 2017.

Only BASF’s “new dicamba,” Engenia, was approved in Arkansas in 2017. Plaintiffs— both grower and applicator plaintiffs—bring the following counts against the defendants: (1) strict products liability for manufacturing, selling, and distributing dicamba and DT seeds that were defective; (2) negligence in the design, development, marketing, distribution, and sale of dicamba and DT seeds; (3) breach of implied warranty of merchantability; (4) breach of implied warranty of fitness for a particular purpose;

(5)violation of Arkansas’s Deceptive Trade Practices Act (“ADTPA”); (6) fraud, deceit, and/or misrepresentation; (7) unjust enrichment, and (8) punitive damages. The Motions to Dismiss Defendants have moved to dismiss for failure to state a claim under Federal Rule of Civil Procedure 12(b)(6). The purpose of a Rule 12(b)(6) motion to dismiss for failure

to state a claim is to test the legal sufficiency of a complaint so as to eliminate those actions “which are fatally flawed in their legal premises and deigned to fail, thereby sparing litigants the burden of unnecessary pretrial and trial activity.” Young v. City of St. Charles, 244 F.3d 623, 627 (8th Cir. 2001) (citing Neitzke v. Williams, 490 U.S. 319, 326-27 (1989)). “To survive a motion to dismiss, a claim must be facially plausible,

meaning that the ‘factual content. . . allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged.’” Cole v. Homier Dist. Co., Inc., 599 F.3d 856, 861 (8th Cir. 2010) (quoting Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009)). The Court must “accept the allegations contained in the complaint as true and draw all reasonable inferences in favor of the nonmoving party.” Id. (quoting Coons v. Mineta, 410 F.3d 1036, 1039 (8th Cir. 2005)). However, “[t]hreadbare recitals of the elements of

a cause of action, supported by mere conclusory statements,” will not pass muster. Iqbal, 556 U.S. at 678. Monsanto and BASF each raise several points in support of their motions to dismiss. Monsanto’s motion will be discussed first. I. Monsanto’s Motion to Dismiss Although plaintiffs’ complaint is not entirely clear, it appears that only the grower

plaintiffs actually purchased DT seeds from Monsanto, and the applicator plaintiff purchased dicamba but no DT seeds. Monsanto’s arguments for dismissal are specific to each set of plaintiffs. A. Grower plaintiffs’ claims First, Monsanto argues that the grower plaintiffs’ claims are barred by contract.

Grower plaintiffs allege that they purchased Monsanto’s DT seeds. To do so, those plaintiffs must have entered into Monsanto Technology/Stewardship Agreements (“MTSAs”) with Monsanto. Monsanto asserts that the growers’ claims are completely barred by the parties’ MTSA. The MTSA specifies the terms under which Monsanto permits use of its patented

biotechnologies. For example, seed purchasers agree that they will use the seed solely for a single planting of a commercial crop; they won’t transfer the seed to any other entity for planting; and they’ll allow Monsanto access to land to examine and take samples of crops or seeds thereon. In addition, the MTSAs establish limitations regarding assertion of claims against Monsanto. The parties agreed that the Agreement and the parties’ relationship will be governed by Missouri law, and the MTSAs establish a mandatory

notice requirement before plaintiffs may file any claims. The notice must include a statement setting forth the nature of the claim and the name of the Monsanto technology, and it must be delivered within 15 days of the grower’s first observing issues regarding the performance or non-performance of the technology. The MTSA also limits the grower plaintiffs to the exclusive remedy of a return of the purchase price of their DT seeds.

Monsanto argues that the MTSA thus requires dismissal of all the grower plaintiffs’ claims. Plaintiffs counter that the MTSA’s notice, forum selection, choice of law, and limitation of liability provisions do not apply because the MTSAs are invalid contracts of adhesion. Plaintiffs, quoting an Arizona Supreme Court case, state that a contract of adhesion is

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