Johnson v. Land O' Lakes, Inc.

181 F.R.D. 388, 1998 U.S. Dist. LEXIS 13074, 40 U.C.C. Rep. Serv. 2d (West) 191, 52 Fed. R. Serv. 1700, 1998 WL 527288
District Court, N.D. Iowa·Decided August 21, 1998·No. No. C 96-3079-MWB·Published·Cited by 15 cases

Opinion

MEMORANDUM OPINION AND ORDER REGARDING PLAINTIFFS’ MOTION IN LIMINE

BENNETT, District Judge.

This matter comes before the court pursuant to plaintiffs’ July 24, 1998, motion in limine. Plaintiffs Larry and Marvin Johnson have moved to exclude certain evidence, primarily pursuant to Fed. R. Evid. 403, asserting that its probative value is exceeded by its potential for unfair prejudice. The Johnsons seek to exclude the following kinds of evidence: (1) evidence about other HTA eases; (2) evidence of other settlements or offers of settlement in other HTA cases; (3) evidence that is not in writing of or concerning demands for reasonable assurances; (4) evidence of possible losses of other shareholders or patrons of Land O’ Lakes; (5) evidence of subsequent acts by the Johnsons; (6) testimony of Diana Klemme; and (7) evidence of the claims of the parties in the summary judgment proceedings. Defendant Land O’ Lakes resisted the motion on August 4, 1998.

Rule 402 of the Federal Rules of Evidence provides generally that “[a]ll relevant evidence is admissible,” while “[ejvidence which is not relevant is not admissible.” Fed. R. Evid. 402. Rule 403, however, provides that even some relevant evidence may be excluded:

Although relevant, evidence may be excluded if its probative value is substantially outweighed by the danger of unfair prejudice, confusion of the issues, or misleading the jury, or by considerations of undue delay, waste of time, or needless presentation of cumulative evidence.

[390]*390Fed. R. Evid. 403. As the Eighth Circuit Court of Appeals recently explained,

Relevant testimony is assumed admissible, Fed.R.Evid. 402, unless its probative value is “substantially outweighed” by the possibility of unfair prejudice. Fed.R.Evid. 403. Once a party has demonstrated the relevance and probative value of the evidence, the role of the district court is simply to determine whether admission of the exhibit would create an “undue tendency to suggest decision on an improper basis.” Notes of Advisory Committee, Fed. R.Evid. 403. A district court may exclude relevant evidence if the probative value of the evidence is substantially outweighed by the danger of unfair prejudice. Fed. R.Evid. 403.

United States v. Mulder, 147 F.3d 703, 707 (8th Cir.1998). The court will consider seria-tim the categories of evidence the Johnsons seek to exclude to determine whether Rule 403 or some other rule of evidence should bar its admission.

First, the Johnsons seek to exclude evidence about other HTA cases pursuant to Rule 403. More specifically, they seek to prohibit testimony and comment about other HTA lawsuits that have been filed against producers by Land O’ Lakes, or by other grain elevators, cooperatives, or grain companies, or lawsuits that have been filed by producers against Land O’ Lakes, or other grain elevators, cooperatives, or grain companies, including, but not limited to, the allegations in and the outcomes of such lawsuits. They argue that exclusion of this evidence is appropriate, because this court has observed that each HTA case is dependent upon the specific contracts and circumstances involved. Land O’ Lakes has no objection to this evidentiary limitation. The court agrees that such evidence is only marginally relevant, and if relevant at all, is unfairly prejudicial, because it presents serious potential for confusion and for decisions on an improper basis, such as conformance with other cases, rather than upon evaluation of the evidence and arguments in this case. Fed. R. Evid. 403. This evidence is also likely to cause “undue delay,” another ground for exclusion under Rule 403. Therefore, this portion of the Johnsons’ motion in limine will be granted.

Exclusion of the second category of evidence — evidence of other settlements or offers of settlement in other HTA cases — is more contentious. The Johnsons contend that the court should preclude any evidence, testimony, or mention of settlements, workouts, or other arrangements among and between any producer with HTAs and Land O’ Lakes, whether at the Rockwell Ag Center, or at any other facility operated by Land O’ Lakes, because such testimony or evidence would be in the nature of settlement discussions or compromises of disputed claims. This argument appears to be founded on Fed. R. Evid 408, not Fed. R. Evid. 403, the authority cited as the general authority for the Johnsons’ motion. Land O’ Lakes specifically contends that this evidence may not be excluded pursuant to Rule 408, because that rule applies only to settlement or compromise of a “claim,” citing Crues v. KFC Corp., 768 F.2d 230, 233 (8th Cir.1985), and Land O’ Lakes asserts that it entered into negotiations with various producers, evidence of which may be relevant here, prior to the time any “claim” existed.

Rule 408 of the Federal Rules of Evidence provides, in pertinent part, as follows:

Evidence of (1) furnishing or offering or promising to furnish, or (2) accepting or offering or promising to accept, a valuable consideration in compromising or attempting to compromise a claim which was disputed as to either validity or amount, is not admissible to prove liability for or invalidity of the claim or its amount. Evidence of conduct or statements made in compromise negotiations is likewise not admissible____

Fed. R. Evid. 408 (emphasis added). Land O’ Lakes is correct that the Eighth Circuit Court of Appeals has explained that “Rule 408 applies only to an offer to compromise a ‘claim.’ ” See Crues, 768 F.2d at 233. In Crues, the court held that “it is not clear that Crues had a claim against KFC in August 1977,” the time at which KFC made two offers to convert Crues’s fish franchise to a chicken franchise, offers Crues argued were inadmissible as offers to compromise under Rule 408. Id. The court noted that, contrary [391]*391to Crues’s contention that he had a “claim” at that time, “his actions at that time showed his intent to proceed with the fish franchise.

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Johnson v. Land O' Lakes, Inc., 181 F.R.D. 388, 1998 U.S. Dist. LEXIS 13074, 40 U.C.C. Rep. Serv. 2d (West) 191, 52 Fed. R. Serv. 1700, 1998 WL 527288 (N.D. Iowa 1998).

181 F.R.D. 388 (Johnson v. Land O' Lakes, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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