Dahlman Farms, Inc. v. FMC Corp.

240 F. Supp. 2d 1012, 2002 WL 31750005
CourtDistrict Court, D. Minnesota
DecidedDecember 2, 2002
DocketCIV.01-986 JEL/JGL
StatusPublished
Cited by7 cases

This text of 240 F. Supp. 2d 1012 (Dahlman Farms, Inc. v. FMC Corp.) is published on Counsel Stack Legal Research, covering District Court, D. Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dahlman Farms, Inc. v. FMC Corp., 240 F. Supp. 2d 1012, 2002 WL 31750005 (mnd 2002).

Opinion

ORDER

LANCASTER, District Judge.

This action arises from Dahlman Farms, Inc.’s (Dahlman) use of AIM herbicide (AIM) on its seed corn crop in 1999, which allegedly caused severe damage to the crop and resulted in a loss of yield. Dahl-man sued the manufacturer of AIM, FMC Corporation (FMC), asserting several claims under Minnesota state law. The matter comes before the Court on FMC’s Motion for Summary Judgment. For the reasons given below, the Court grants FMC’s motion.

I. SUBJECT MATTER

JURISDICTION

The Court has jurisdiction over this action pursuant to 28 U.S.C. §§ 1332(a)(1), 1441(a) (2000).

II. BACKGROUND

Dahlman is a Minnesota corporation engaged in the business of producing seed corn and seed soybean. In 1999, Craig Dahlman, one of three brothers who owned and worked for Dahlman, decided to purchase AIM from the Howe Company, a local dealer, for use on Dahlman’s seed corn crop. AIM was a relatively new product that had been registered for distribution and sale by the EPA in the fall of 1998. Craig Dahlman’s decision to purchase AIM was based primarily on statements found on the AIM label, which had been approved by the United States Environmental Protection Agency (EPA). Specifically, the label stated that AIM “is designed to be mixed with water and applied to corn (field, seed, popcorn, and silage) for selective postemergenee control of broadleaf weeds.” It stated further: “Due to environmental conditions and certain spray tank additives, some herbicidal symptoms may appear on the crop. How *1015 ever, the crop recovers quickly with no loss in yield.” In addition to reviewing the product label, Craig Dahlman spoke with a salesperson from the Howe Company and Dahlman’s crop consultant, both of whom told him that AIM was safe for use on seed corn.

Dahlman applied AIM to its seed corn crop according to the instructions on the label in June 1999. Within days, portions of the crop were affected by a condition known as “leaf wrap” or “buggy whipping.” This condition severely damages or kills leaves wrapped around the outside of a plant, thereby preventing the plant from fully emerging. Dahlman reported the problem to FMC. FMC responded by sending an area sales representative, a district sales manager, and an area technical representative to view Dahlman’s fields. FMC offered to hire manual laborers to walk through the fields and tear the tightly wrapped, dessicated leaves off of the plants. Dahlman refused the offer because it was concerned about the delicate condition of the plants. Some of Dahlman’s seed corn plants died; others were severely damaged or experienced delayed development.

Dahlman commenced this action against FMC in Minnesota state court in May 2001, and FMC removed it to this Court on the basis of diversity of citizenship between the parties. Dahlman filed a seven-count Amended Complaint in February 2002, stating causes of action under Minnesota law for negligent testing, negligent labeling, strict liability, breach of express warranty, breach of implied warranty, false advertising in violation of Minn.Stat. § 325F.67 (2000), and consumer fraud in violation of Minn.Stat. § 325F.69 (2000). FMC now moves for summary judgment, arguing that Dahlman’s claims are preempted by the Federal Insecticide, Fungicide, and Rodenticide Act, 7 U.S.C. §§ 136-136y (2000) (FIFRA), or, in the alternative, barred by the Minnesota economic loss doctrine, Minn.Stat. § 604.10 (2000). FMC also argues that, to the extent Dahlman’s claims are not preempted or barred, a limitation of remedies provision found on the AIM label limits Dahl-man’s recovery to the amount it paid to purchase the AIM.

III. DISCUSSION

Summary judgment is proper “if the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law.” Fed.R.Civ.P. 56(c). The moving party “always bears the initial responsibility of informing the district court of the basis for its motion,” and must identify “those portions of [the record] which it believes demonstrate the absence of a genuine issue of material fact.” Celotex Corp. v. Catrett, 477 U.S. 317, 323, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986). If the moving party satisfies its burden, Rule 56(e) requires the nonmoving party to respond by submitting evidentiary materials that designate “specific facts showing that there is a genuine issue for trial.” Celotex, 477 U.S. at 324, 106 S.Ct. 2548; Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574, 587, 106 S.Ct. 1348, 89 L.Ed.2d 538 (1986).

FMC argues that Dahlman’s claims are preempted by the FIFRA because they are premised on the inadequacy of the EPA-approved AIM label, which stated that AIM could be used on seed corn and that such use would not result in a loss of yield.

The “FIFRA creates a comprehensive scheme for the regulation of pesticide labeling and packaging.” Welchert v. Am. Cyanamid, Inc., 59 F.3d 69, 71 (8th Cir.1995). Under the FIFRA, pesticides dis *1016 tributed or sold in the United States must be registered with the EPA. 7 U.S.C. § 136a(a); see Netland v. Hess & Clark, Inc., 284 F.3d 895, 898 (8th Cir.), cert. denied, — U.S. -, 123 S.Ct. 415, 154 L.Ed.2d 294 (2002); Welchert, 59 F.3d at 71. The FIFRA’s definition of the term “pesticide” includes herbicides such as AIM. See 7 U.S.C. § 136(u); Welchert, 59 F.3d at 71 n. 1. A pesticide manufacturer applying for registration must supply the EPA with a statement containing certain information about the pesticide, including a copy of the pesticide label. 7 U.S.C. § 136a(c)(1)(C); see Netland, 284 F.3d at 898; Welchert, 59 F.3d at 71. Before registering a pesticide, the EPA must make a determination that the pesticide label complies with the FIFRA. 7 U.S.C. § 136a(c)(5)(B); see Netland, 284 F.3d at 898; Welchert, 59 F.3d at 71 n. 2.

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