Dettenhaim Farms, Inc. v. GreenPoint AG, LLC, Nationwide Insurance Company, Wesley Emmett Sanchez, and ABC Insurance Company

Louisiana Court of Appeal·Decided November 17, 2021·No. 54,162-CA·Published

Opinion

Judgment rendered November 17, 2021.

Application for rehearing may be filed within the delay allowed by Art. 2166, La. C.C.P.

No. 54,162-CA

COURT OF APPEAL

SECOND CIRCUIT

STATE OF LOUISIANA

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Dettenhaim Farms, Inc. Plaintiff-Appellee versus

Greenpoint Ag, LLC, Nationwide Defendant-Appellant Mutual Insurance Company, Wesley Emmett Sanchez, and ABC Insurance Company

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Appealed from the

Sixth Judicial District Court for the Parish of East Carroll, Louisiana Trial Court No. 22,651

Honorable Michael E. Lancaster, Judge

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COOK, YANCEY, KING & GALLOWAY By: Brian Allen Homza Counsel for Appellants Elizabeth Mendell Carmody Luke D. Whetstone

HALES & STRICKLAND Counsel for Appellees By: Myrt T. Hales, Jr. Joshua Strickland

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Before PITMAN, THOMPSON and ROBINSON, JJ.

ROBINSON, J.

In this lawsuit alleging damages to a soybean crop caused by the failure of a salesman of crop supplies to timely notify two farmers that he was no longer checking their soybean crop for insects, the defendants appeal a judgment awarding $246,334 in damages for lost profits.

We amend the judgment to reduce the damage award and to dismiss two of the parties plaintiff, and affirm the amended judgment.

BACKGROUND

Robert Nathan Dettenhaim (“Bobby”) and his son, Robert Jason Dettenhaim (“Jason”), together farm 800 acres located in East Carroll Parish and West Carroll Parish. The land is owned by Jason’s parents. Jason is the president, sole owner, and sole board member of Dettenhaim Farms, Inc. (“DFI”). DFI never farmed crops before 2018, and it owns no cropland.

Wesley Sanchez is a longtime close friend of the Dettenhaims.

Sanchez worked as an outside salesmen for various sellers of farm chemicals. Since the 1990s, Bobby and Jason had purchased most of their farm chemicals through Sanchez. Greenpoint Ag, LLC became Sanchez’s employer around 2011. He was based out of Greenpoint’s store in Mer Rouge, Louisiana.

The process of preparing for the planting of the soybean crop was the same each crop year. Bobby and Jason would book their seeds in December. A chemical burndown of the fields was conducted early in the next year. Sanchez would check the fields before the burndown to see what weeds needed to be destroyed. Sanchez would check the fields again after the burndown. Several weeks after planting the seeds, Bobby and Jason would spray a herbicide to destroy any weeds and vines. During the summer,

Sanchez would check their crops for stinkbugs. Once the stinkbugs reached a certain threshold, he would recommend an insecticide to be applied. Sanchez was Bobby and Jason’s “bug man.”

Sanchez had about 12 customers in 2016, and only three of those customers employed independent crop consultants. The Dettenhaims were not one of those three. They completely relied on Sanchez to check their crops and make recommendations about what and when to spray. Sanchez would often check their fields without being called and on his own schedule. Their professional relationship was a bountiful one until 2016. The 2016 growing season Going into the 2016 season, the Dettenhaims had a carryover balance of around $45,000 with Greenpoint. They were required to pay cash for products because they lacked credit. On March 14, they paid an outstanding balance of $134,000 owed to John Deere Financial (“JDF”). Bobby and Jason promptly applied for credit with JDF.

Leela “Sue” Rainbolt-Tatum is an administrative assistant at Greenpoint’s Mer Rouge location. On April 6, she received a hand ticket reflecting the purchase of $10,098 in chemicals by the Dettenhaims. She settled that ticket on the same date to their JDF line of credit.

On April 11, Sanchez handed Rainbolt-Tatum a check for $10,098 from the Dettenhaims and asked her to apply it to their cash account or a prepay account. She did not remember the hand ticket from five days earlier due to the volume of hand tickets that she had processed during that period. She told Sanchez that because the Dettenhaims did not have a cash account, the only option was to apply it to the carryover balance on their credit account or return it. She attempted to apply the check to the Dettenhaims’

credit account, but the check was canceled a week later. The JDF credit was exhausted during the burndown. Marestail weed returned following the burndown, but Sanchez made it right by arranging for another herbicide.

Jason spoke with Keith Aymond, Greenpoint’s credit manager, on April 7 concerning the carryover balance and told Aymond that he planned to sell several houses and some of his cattle. Aymond, who was based in south Louisiana, told Jason that the account would go to collections if not paid by June 15.

Between May 8 and May 12, Bobby and Jason planted their soybean crop on 698.87 acres covering farm numbers 281 and 1736 in East Carroll Parish. On May 10, they planted their soybean crop on 100.84 acres covering farm number 4646 in West Carroll Parish.

Benny Guerrero, Greenpoint’s location manager in Mer Rouge, claimed that during a June 9 phone conversation, he told Bobby that the Dettenhaims’ past-due balance had caused a lot of anxiety, they were driving Sanchez crazy, and he thought it was best that they find a new supplier. Loftin Madden, the warehouse manager at the Mer Rouge location, stood in the doorway of Guerrero’s office during the call and heard Guerrero’s side of the conversation.

Later that month, Benny related to Sanchez that he had told the Dettenhaims that they probably needed to find somewhere else to do business. He told Sanchez that he might not need to go back to the Dettenhaims’ fields and to spend his time more wisely.1 Sanchez never communicated this to his friends and loyal customers Bobby and Jason. In

1 Around that same time, Guerrero told other employees at the Mer Rouge location not to provide services to the Dettenhaims.

fact, nobody associated with Greenpoint did. Guerrero thought his phone conversation with Bobby was very direct and Bobby knew what he meant, so there was no need to specifically tell Bobby and Jason that Sanchez was no longer going to their farm. Sanchez knew that the Dettenhaims did not have a crop consultant. However, he thought what Benny had told them was sufficient.

Aymond texted Jason on June 29 about the outstanding balance.

Jason told him that he could pay only $5,000 at the moment. Aymond told him that was perfect and to bring the check to the Mer Rouge location. Jason’s secretary delivered the $5,000 check as instructed.

A cash account was opened for Bobby and Jason at Greenpoint in June. This allowed them to buy products from Greenpoint by either producing a check or paying at the time the product was picked up or delivered. At the end of June, the Dettenhaims purchased Gramoxone and a 30-gallon drum of Roundup from Greenpoint. Although there was some confusion involving the matter, the $5,000 check was apparently applied to this purchase and the remainder was applied to the carryover balance.

Jason spoke to Sanchez on July 20 and found him to be in a good mood. Jason related that Aymond contacted him on August 1 and accused him of not submitting the $5,000 check as promised. On that date, a letter was sent from Greenpoint to the Dettenhaims reminding them of the past- due balance.

Jason texted Sanchez on August 10 because he realized that he had not heard from Sanchez for some time. Sanchez told Jason that he needed to call his consultant. Jason then spoke with a neighboring farmer, David Elliott, about whether he had been spraying his fields.

On August 24, Bobby asked a friend, Mark Tackett, to look at his soybean fields. Tackett and Justin Densmore, a salesman at Crop Productions Services, came the next day. They only looked at fields in East Carroll Parish. The damage that they observed was from worms and stinkbugs. They recommended that the fields be sprayed because the stinkbugs were at threshold levels. The recommended insecticide was picked up by the Dettenhaims on August 30.

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Dettenhaim Farms, Inc. v. GreenPoint AG, LLC, Nationwide Insurance Company, Wesley Emmett Sanchez, and ABC Insurance Company, (La. Ct. App. 2021).

Dettenhaim Farms, Inc. v. GreenPoint AG, LLC, Nationwide Insurance Company, Wesley Emmett Sanchez, and ABC Insurance Company (Dettenhaim Farms, Inc. v. GreenPoint AG, LLC, Nationwide Insurance Company, Wesley Emmett Sanchez, and ABC Insurance Company) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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