Hanor & Bixler Farms LLC v. Tyson Foods, Inc.

CourtDistrict Court, E.D. Missouri
DecidedSeptember 15, 2025
Docket1:24-cv-00188
StatusUnknown

This text of Hanor & Bixler Farms LLC v. Tyson Foods, Inc. (Hanor & Bixler Farms LLC v. Tyson Foods, Inc.) 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
Hanor & Bixler Farms LLC v. Tyson Foods, Inc., (E.D. Mo. 2025).

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF MISSOURI SOUTHEASTERN DIVISION HANOR & BIXLER FARMS, LLC, et al., ) ) Plaintiffs, ) v. ) No. 1:24-cv-00188-SEP ) TYSON FOODS, INC., et al., ) ) Defendants. ) MEMORANDUM AND ORDER Before the Court is Plaintiffs’ Motion to Remand and for Sanctions. Doc. [39]. For the reasons set forth below, remand is granted and sanctions are denied. All other pending motions are denied as moot. FACTS AND BACKGROUND Plaintiffs Hanor & Bixler Farms, LLC, Tetley Company, LLC, Preston Dale Arnold, Brandon Sutton, and Emily Sutton, individually and on behalf of similarly situated individuals, originally filed this class action in the Circuit Court of Scott County, Missouri, against Defendants Tyson Foods, Inc., Tyson Chicken, Inc., and Tyson Sales & Distribution, Inc. (collectively, Tyson); Cal-Maine Foods, Inc. (Cal-Maine); and Tyson’s Division Vice President of Food Service Value Added Poultry, Mark Avery. Doc [1-4] at 2-33. Plaintiffs are the owners and operators of broiler chicken farms that provided chicken farming services to Tyson until Tyson closed its Dexter, Missouri Complex (Dexter Complex) in October 2023. Id. at 3-4. Plaintiffs have limited the putative class members to include only themselves and 40 other entities and individuals who own chicken farms located within 50 miles of the Dexter Complex. Id. at 21, 33. Plaintiffs allege that Defendants engaged in an anticompetitive scheme to eliminate competition for the purchase of broiler chicken farmer services, reduce the supply of broiler chickens, and obtain artificially high profits in the Dexter market. Id. at 3. The Complaint contains the following unredacted allegations, which the Court assumes are true for the purposes of evaluating a motion to remand.1 See Filla v. Norfolk S. Ry. Co., 336

1 Based on the extensive redactions in the pleadings and Defendants’ motions for leave to file numerous relevant documents under seal, it appears that Defendants believe all of the documents that form the basis of many of Plaintiffs’ allegations are confidential and should remain under F.3d 806, 811 (8th Cir. 2003) (“[T]he district court should resolve all facts and ambiguities . . . in the plaintiff’s favor.”). Tyson had operated a vertically-integrated chicken production system at the Dexter Complex for over 20 years prior to its closure, and prior to Tyson’s ownership, the Dexter Complex had operated as a slaughterhouse for broiler chickens since 1893. Doc. [1-4] at 3, 13. In Tyson’s chicken production system, Plaintiffs constructed broiler chicken houses that were financed through Tyson’s “poultry banks” and could be used only for raising chickens for slaughter at the Dexter Complex. Id. at 3. Broiler chicken farms must be located within 50 miles of any processing plant they supply. Id. at 14. Because the Dexter Complex was the only chicken processing plant within 50 miles of their farms, the Dexter Complex was the only plant where Plaintiffs could sell their chickens for processing. Id. On August 7, 2023, Tyson announced that all operations at the Dexter Complex would stop in October 2023. Id. at 4. After drawing scrutiny from Missouri public officials, Tyson publicly committed to sell the Dexter Complex to any interested party, including a

seal pursuant to a protective order that was entered in a separate state court case. But Eastern District of Missouri Local Rule 13.05(A)(3) provides that “[t]he fact that certain information or material has been protected as confidential by parties in a case pursuant to a Protective Order is relevant to, but not dispositive of, whether this information or material will be sealed when filed with the Court,” and Defendants have not provided compelling reasons for sealing most of the purportedly confidential documents. See Flynt v. Lombardi, 885 F.3d 508, 511 (8th Cir. 2018) (“The presumption of public access to judicial records may be overcome if the party seeking to keep the records under seal provides compelling reasons for doing so.” (citing In re Neal, 461 F.3d 1048, 1053 (8th Cir. 2006))); see also In re Neal, 461 F.3d at 1054 (explaining that the “unintended, potential secondary consequence of negative publicity . . . is regrettable but not a basis for sealing the filing”); A.I.G. Agency, Inc. v. Am. Int’l Grp., Inc., 2025 WL 973946 (E.D. Mo. Mar. 31, 2025) (“When the documents sought to be sealed are filed with dispositive motions, the presumption of public access is harder to overcome.” (citing Ball Bey v. Chandler, 2024 WL 888396, at *4 (E.D. Mo. Feb. 13, 2024) (collecting cases))). Moreover, some of the documents have been publicly recorded, and many of the redacted allegations in the Petition have been openly repeated by Defendants in their own filings. See, e.g., Doc. [1-6] at 3-4 (“I understand that Plaintiffs have made this allegation by equating the defined term ‘Seller’s knowledge’ in the Sale Agreement, which is defined to refer to Mr. Avery’s personal knowledge, with the undefined term ‘Tysons’s knowledge’ as it appears in the Property Use Agreement and in the Memorandum of Understanding.”); Doc. [22] at 8 (“Plaintiffs inexplicably conclude that ‘only Mark Avery’ has knowledge of several ordinary course documents ‘referenced in’ the PSA related to the operation of the [Dexter] Complex that were delivered to Cal Maine in connection with the sale.”); Doc. [54] at 7 (“Avery is named in the PSA. . . .”). But the Court will not expend the resources to bring the parties’ filings into compliance with Local Rule 13.05 at this time, because its ruling rests on information in the parties’ redacted pleadings. competitor, but Tyson’s Chief Executive Officer stated that it is Tyson’s policy not to sell facilities to competitors. Id. at 4-6. Tyson negotiated and ultimately sold the Dexter Complex to Cal-Maine, which processes only unfertilized table eggs, pursuant to an anticompetitive scheme with the intent to restrain trade in broiler chicken production in the Dexter geographic market. Id. at 6-7. Defendant Avery “served in a supervisory and/or management role at Tyson, including but not limited to the position of Complex Manager of the Dexter Complex and Vice President,” in which capacity he ”actively participated in, authorized, directed and/or knowingly approved or ratified this anticompetitive scheme.” Id. at 12, 16, 18. Tyson and Cal-Maine memorialized their anticompetitive agreement and intent to restrain trade in broiler chicken production in a Purchase and Sale Agreement (PSA) and Property Use Agreement (PUA). Id. at 7. According to Plaintiffs, Defendants’ PSA contains evidence that the sale of the Dexter Complex was intended to restrain trade and suppress the market supply of chicken meat. Id. at 14-15. The PSA specifically refers to Avery having knowledge about certain documents and agreements related to the operation and sale of the Dexter Complex and whether the sale and closure of the Dexter Complex violated Missouri law. Id. at 15-16. The PSA also refers to several exhibits, including a publicly-recorded Memorandum of Understanding (MOU) that references the PUA, which Plaintiffs allege contains anticompetitive terms. Id. at 7. The MOU does not state that the PUA contains anticompetitive terms, but it does state that the PUA “shall remain in force and effect for 25 years and that it shall bind Cal-Maine, any successor grantee, transferee, assignee, owner, tenant or any other party in possession of the property on which the Dexter Complex is located.” Id. at 17 (citation modified). Tyson subsequently removed all of the necessary equipment for processing chickens from the Dexter Complex, and Cal-Maine retrofitted the Dexter Complex so that chickens could no longer be processed there. Id.

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Bluebook (online)
Hanor & Bixler Farms LLC v. Tyson Foods, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/hanor-bixler-farms-llc-v-tyson-foods-inc-moed-2025.