Bunting v. Perdue, Inc.

611 F. Supp. 682, 1985 U.S. Dist. LEXIS 18913
CourtDistrict Court, E.D. North Carolina
DecidedJune 14, 1985
Docket82-124-CIV-4
StatusPublished
Cited by9 cases

This text of 611 F. Supp. 682 (Bunting v. Perdue, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bunting v. Perdue, Inc., 611 F. Supp. 682, 1985 U.S. Dist. LEXIS 18913 (E.D.N.C. 1985).

Opinion

MEMORANDUM OF DECISION

JAMES C. FOX, District Judge.

Plaintiff initiated this action by complaint filed against defendants Perdue- Farms, Inc. (hereinafter Perdue) and Perdue, Inc., both Maryland corporations, 1 on December 15, 1982. With leave of the court, plaintiff filed an amended complaint on August 1, 1983. Plaintiff seeks declaratory and injunctive relief, as well as compensatory and punitive damages, for injuries allegedly caused by defendants’ breach of contract, and violations of the Packers and Stockyards Act (7 U.S.C. §§ 181 et seq.), the North Carolina Business Opportunity Sales Act (N.C.G.S. §§ 66-94 et seq.) and the North Carolina Unfair and Deceptive Trade Practices Act (N.C.G.S. § 75-1.1). This matter is before the court on defendants’ motions to dismiss and for summary judgment as to plaintiff’s statutory claims. These motions have been thoroughly briefed, and are now ripe for disposition.

FACTS

Except as otherwise indicated, the undisputed facts are as follows:

Perdue is an integrated poultry producer engaged in the poultry business in Northeastern North Carolina. Within this integrated operation, Perdue owns its own hatchery and breeding flocks, delivering its baby chicks to independent contract growers. During the course of a six to eight week grow-out period, the contract grower cares for and feeds the chicks. 2 At the end *684 of this grow-out period, Perdue picks up the chickens for delivery to its processing plants, which are operated by Perdue, Inc., a wholly owned subsidiary of Perdue. The birds are then processed and packed, and shipped to wholesale distributors and retail chain stores for resale to the consumer.

The plaintiff in this case was one of Perdue’s independent contract growers, and he attempts herein to challenge the validity of Perdue’s growing operations under the statutes indicated above. On June 30, 1976, plaintiff contracted with Perdue to become an independent contract grower. Pursuant to this contract, Perdue constructed a 12,800 square foot poultry house for the plaintiff, at a cost of $36,500. The parties also executed a North Carolina Large Bird Agreement on October 1, 1976, whereby plaintiff raised three-week old birds for Perdue. Large birds are less difficult to grow than small birds, and require less time and supervision'. Plaintiff alleges that this arrangement attracted him to the program since he held a full-time job. On September 16, 1977, however, plaintiff entered into a North Carolina Small Bird Agreement with Perdue; a discontinuation of the large bird program necessitated this change. Pursuant to the Small Bird Agreement, plaintiff agreed to accept day-old birds and raise them until they were seven to eight weeks old. Because small birds are more difficult to grow and require more supervision, plaintiff contends he was required to leave his full-time job. On January 20, 1978, plaintiff expanded his poultry operation, and contracted with Per-due to build a second poultry house. Thereafter, plaintiff signed several different grow-out contracts with Perdue, some calling for the placement of large birds on his farm, and others calling for the placement of small birds. Plaintiff contends that each change from large bird to small bird agreement, or vice versa, was forced upon him by Perdue’s threats to terminate him as a grower if he did not sign a new contract.

In March of 1980, plaintiff’s performance output fell to the point that Perdue contends he ranked as one of the least productive growers in Perdue’s grow-out program. Plaintiff alleges that Perdue’s productivity figures are inaccurate for several reasons. First, plaintiff contends that he was given the wrong feed mixture by Per-due for one flock, and the weight of these chickens differed markedly from previous flocks. With other flocks, plaintiff alleges that he began missing chickens from the time they were picked up on his farm by Perdue and the time that they were weighed at Perdue’s plant. On September 11, 1981, Perdue picked up the chickens from plaintiff’s chicken houses. At this time, plaintiff was engaged in raising small birds for Perdue. Perdue then extended an offer to plaintiff to raise larger birds. Plaintiff declined to sign another agreement, but contends he told Perdue that he would grow whatever birds they placed with him on his farm. Because plaintiff would not enter into a written agreement with Perdue, however, plaintiff's status as an independent contract grower was terminated. Plaintiff alleges that he was not given written notice of his termination until March of 1982, when he received a letter from Perdue, Inc. Plaintiff further alleges that this failure to notify him in writing is in violation of the terms of the North Carolina Grower Agreement of June 12, 1981.

ANALYSIS

I. The Packers and Stockyards Act

In Count I of his complaint, plaintiff alleges that defendants committed unfair, discriminatory, and/or deceptive practices in violation of the Packers and Stockyards Act, 7 U.S.C. § 181 et seq. Sections 202(a) and (e) of the Act, 7 U.S.C. § 192(a) and (e), state:

It shall be unlawful with respect to livestock, meats, meat food products, livestock products in unmanufactured form, *685 poultry, or poultry products for any packer or any live poultry dealer or handler to:
(a) Engage in or use any unfair, unjustly discriminatory, or deceptive practice or device; or ...
(e) Engage in any course of business or do any act for the purpose or with the effect of manipulating or controlling prices, or of creating a monopoly in the acquisition of, buying, selling, or dealing in, any article, or of restraining commerce.

Section 503 of the Act, 7 U.S.C. § 218b, defines “live poultry dealer” as “any person engaged in the business of buying or selling live poultry in commerce for purposes of slaughter either on his own account or as the employee or agent of the vendor or purchaser.”

Plaintiff contends that the facts alleged in his complaint demonstrate that Perdue is a live poultry dealer or handler in that it is engaged in the business of buying live poultry from its contract growers. In support of his contention, plaintiff alleges that the form and substance of the transactions between himself and Perdue Farms was that of a sale and purchase. Evidence of these “sales” is allegedly embodied in the terms of Exhibit “E” attached to the Affidavit of Wiley B. Bunting, Jr., filed August 31,1983. Plaintiff also alleges that Exhibit “F”, which is attached to the same affidavit, strengthens his characterization of the arrangement as that of a sale. Exhibit “E” is a receipt or delivery ticket given to the plaintiff by Perdue Farms when Perdue Farms picked up the chickens. This receipt contains sale terminology, and reflects a charge — which plaintiff alleges was charged to him — of 12 cents per chick.

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Bluebook (online)
611 F. Supp. 682, 1985 U.S. Dist. LEXIS 18913, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bunting-v-perdue-inc-nced-1985.