Cohee v. Global Horizons Inc.

310 F. App'x 579
CourtCourt of Appeals for the Fourth Circuit
DecidedFebruary 6, 2009
Docket07-1848
StatusUnpublished

This text of 310 F. App'x 579 (Cohee v. Global Horizons Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fourth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cohee v. Global Horizons Inc., 310 F. App'x 579 (4th Cir. 2009).

Opinion

*581 Affirmed by unpublished PER CURIAM opinion.

Unpublished opinions are not binding precedent in this circuit.

PER CURIAM:

Appellees John M. Cohee, Jr., and his wife, Diana B. Cohee, operate Cohee Farms in Preston, Maryland. (We refer to the appellees as “Cohee”) The present dispute involves a contract between Cohee and appellant Global Horizons, Inc. (“Global”), in which Global agreed to provide Cohee a labor force to harvest watermelon and sweet corn in 2005. Global failed to furnish the promised labor because it could not find housing in the area for its workers. Cohee sued Global for breach of contract in state court, and the action was removed to U.S. District Court on the basis of diversity jurisdiction. A jury determined that the contract was breached and awarded Cohee damages that included lost profits for 2005 and future profits for 2006 and 2007. Global argues that it did not breach any obligation to Cohee because it was not responsible for housing. It also challenges the damages awarded to Cohee on several bases. For the reasons below, we affirm.

I.

We recount the evidence, presented in a four-day trial, in the light most favorable to Cohee, who obtained a favorable verdict. Global is a California corporation that provides foreign agricultural labor to farmers in the United States. Foreign agricultural workers are eligible to enter the United States on a temporary basis through the H-2A visa program. The process of securing H-2A visas is sufficiently complex that Global has a customer base of farmers who are willing to pay Global to navigate that process for them. In late 2003 or early 2004 Global met with several Maryland farmers to provide them information about the availability of H-2A labor and about Global’s services. Cohee was among those in attendance.

In need of labor, Cohee entered a contract with Global for H-2A labor for his 2004 harvest, and Global provided the laborers needed. In early 2005 Cohee again decided to use H-2A labor furnished by Global for that year’s harvest. In March 2005 the parties executed the Farm Labor Contractor H-2A Agreement (the Agreement), drafted by Global, that is at issue in this case. Around April 1, 2005, Cohee began planting 55 acres of watermelon and 65 acres of sweet corn.

Under the Agreement Global committed to furnish labor “at its own expense” to Cohee from June 25, 2005 through September 10, 2005. J.A. 695. The Agreement left open the number of workers required by Cohee, but Cohee requested ten workers in a separate letter of intent that was signed the same day as the Agreement. In return Cohee promised to pay Global an agreed upon hourly wage for each worker plus a certain surcharge. The Agreement provided that the surcharge would be 35 percent if Cohee provided transportation and housing to the workers; 40 percent if Global provided either transportation or housing; and 45 percent if Global provided both transportation and housing. Although Cohee had housed workers in a farmhouse on the property and paid a surcharge of 35 percent in 2004, the farmhouse was torn down after the 2004 harvest. Cohee says that when he approached Global about providing his labor force for the 2005 harvest, he informed Global that he could not provide housing for the laborers during that harvest season. By regulation, housing must be provided to H-2A workers at no cost to the workers. See 20 C.F.R. § 655.102(b).

Global investigated housing possibilities near Cohee Farms during the spring and summer of 2005. In late spring Global *582 inquired about prices at local hotels and booked rooms at the local Econo Lodge Motel, although Global representatives later asserted that that arrangement was always intended to be temporary. In late June Global sent a representative to Cohee Farms and the surrounding area to search for an affordable place to house the workers. Despite these efforts, Global contacted Cohee in late June and, citing difficulties in securing housing, asked to push back the start date from June 25 to July 1. Cohee agreed to the postponement.

Global failed to furnish Cohee with any labor as of July 1 or at any other point during the 2005 harvest. During Cohee’s multiple conversations with Global representatives in June, July, and August about his pressing need for workers, Global representatives informed Cohee that Global “had workers ready to come, but they ... didn’t have any housing.” J.A. 848.

Without his anticipated labor force, Co-hee turned to family and neighbors for help harvesting his crops. A cousin was able to locate a source of labor in Delaware in mid-July, and five to ten workers began traveling from Delaware to Cohee Farms each day to help with the harvest. In mid — to late July or August, a neighbor with a larger farming operation began loaning Cohee between six and twenty-six workers, but only for a few hours each morning. And through a different neighbor, Cohee worked out an arrangement with a broker, C & L Packing, to harvest part of the Cohee Farms watermelon crop in exchange for a favorable price for the watermelons and a broker’s fee for the neighbor who arranged the transaction. According to Cohee, the assistance he received in harvesting “did not even come close” to replacing the workers that Global had contracted to provide. J.A. 855. Roughly fifty percent of his crop was left in the field unharvested at the end of the season.

As a result, Cohee had “nowhere close” to enough sweet corn or watermelon to satisfy his direct market and wholesale customers. J.A. 862. Because of Cohee’s inability to meet customer demand in 2005, he lost some of his direct market and wholesale customers. In the next season (2006) Cohee decided to grow small grains instead of the more profitable watermelon and sweet corn because of a combination of factors, including the damage that Global had caused to his customer base and independent concerns about the availability of labor that season. Cohee’s profits in 2006 and 2007 were reduced as a result, and a sweet corn packaging shed that Cohee had built was rendered useless.

At the conclusion of Cohee’s evidence, Global moved for judgment as a matter of law, and the motion was denied. The jury found Global in breach of its contract with Cohee and awarded Cohee $490,000 for lost profits in 2005, $37,186 for unnecessary expenses in 2005, $150,000 for lost profits in 2006, and $142,500 for lost profits in 2007. Following the verdict Global renewed its motion for judgment as a matter of law and alternatively moved for a new trial. Global also filed a motion to alter or amend the judgment. The district court denied each of these motions. Global now appeals.

II.

Global makes several arguments on appeal. First, it argues that the jury improperly found that it breached the Agreement. Second, it argues that any consequential damages awarded by the jury were improper because the terms of the Agreement, which is governed by California law, prohibited consequential damages. Third, Global argues that each of the specified damages awards' — lost profits in 2005, 2006, and 2007 and unnecessary *583 expenses incurred in 2005 — were improperly awarded.

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Bluebook (online)
310 F. App'x 579, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cohee-v-global-horizons-inc-ca4-2009.