Kent Feeds, Inc. v. Stahl

238 N.W.2d 483, 90 S.D. 23, 1976 S.D. LEXIS 176
CourtSouth Dakota Supreme Court
DecidedJanuary 15, 1976
DocketFile 11465
StatusPublished
Cited by3 cases

This text of 238 N.W.2d 483 (Kent Feeds, Inc. v. Stahl) is published on Counsel Stack Legal Research, covering South Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kent Feeds, Inc. v. Stahl, 238 N.W.2d 483, 90 S.D. 23, 1976 S.D. LEXIS 176 (S.D. 1976).

Opinions

WOLLMAN, Justice.

Plaintiff brought an action against defendants for the balance allegedly due on a series of delivery receipt notes that defendants had signed in consideration for delivery of feed supplement. Defendants alleged in their answer that the notes were not collectible because of failure of consideration; defendants also counterclaimed for damages resulting from an alleged breach of warranty. The trial court directed a verdict in favor of plaintiff on its complaint at the close of defendants’ evidence, and the trial proceeded with defendants’ counterclaim as the only remaining issue. The jury returned a verdict in favor of plaintiff and against defendants on the counterclaim. We reverse in part and affirm in part.

Defendants have been engaged in a general farm partnership since 1961. Their partnership farmsteads are located approximately three miles west and one mile south of Freeman, South [26]*26Dakota. Defendants’ diversified farming operation consists of cultivation of corn, alfalfa, hay and oats, which defendants feed to livestock. In 1970, defendants utilized three separate feedlots in their cattle feeding operation, which will be referred to herein as lots 1, 2 and 3, respectively.

Defendants began purchasing the cattle involved in this lawsuit from various auction barns in the area in the latter part of August 1970, and completed the purchases in early November of that year. The cattle purchased were of two basic types, mixed or crossbred beef cattle, and Holsteins.

As the cattle were introduced into the several feedlots, they were started on a ration of hay and commercial protein supplement. Defendants first used a dry supplement, A & D Primer, and then switched to another dry supplement, 32% Pro X L, both of which were manufactured by plaintiff. These two supplements were fed in all three lots until defendants had the opportunity to purchase a quantity of dry supplement of comparable content at a lower price from another manufacturer.

In the fall of 1970, Morris Kaufman, an employee of plaintiff who operated a livestock feed business in Freeman under the name of Kaufman Milling Service, attempted to interest defendants in purchasing a liquid feed supplement manufactured by plaintiff called Bovin-O-Lac 440. Kaufman had sold plaintiff s feed products since 1958. He had known the defendants since the 1940’s and they had been customers of his since 1968. He was familiar with their feeding operation, the number of cattle they were feeding, and the type and quality of feed they were using. He had often traveled to defendants’ farmstead and had visited with and advised them from time to time about their feeding program. It was he who had sold defendants the dry feed supplement they began using in the fall of 1970. Defendants had no knowledge of the claimed advantages of the liquid supplement until Kaufman and plaintiffs district manager discussed the matter with them.

On October 15, 1970, Kaufman, plaintiffs district manager and another representative of plaintiff met with defendants at their farm for the purpose of promoting the sale of the liquid sup[27]*27plement. Kaufman told defendants that the Bovin-O-Lac had marbling factors and health factors that the dry supplement did not have and that it was also more economical to purchase per pound and that it had gain rates equivalent to dry supplement in the tests that had been run. Kaufman testified that he recalled that defendants were told that the Bovin-O-Lac would do a better job for them as compared to the feed supplement that they_were using.

Defendant Jacob Stahl recalled that Kaufman and plaintiffs district manager had told him that according to tests performed by plaintiff the Bovin-O-Lac was going to help his cattle gain as fast or faster than the dry supplement, that it was going to cost no more than the dry supplement that he was then using, that it had certain health factors that possibly even the dry supplement did not have, that the cattle would yield better when sold, that the Bovin-O-Lac contained a marbling characteristic that would improve the grade of the cattle, and that the Bovin-O-Lac would reduce the cost per pound of gain compared to the dry supplement that defendants were then using.

Based upon the enthusiasm of Kaufman and plaintiffs district manager and on the strength of their representations concerning Bovin-O-Lac 440, defendants decided to switch from the dry supplement they were feeding to plaintiffs liquid supplement. They decided to feed the liquid supplement in lots 1 and 2 and to continue feeding a dry supplement in lot 3 for the purposes of comparison. Accordingly, after the supply of the dry supplement purchased from the competitor manufacturer was exhausted, defendants switched back to plaintiffs dry supplement Pro X L in lot 3.

The first shipment of Bovin-O-Lac 440 was delivered on or about December 5,1970, and was stored in a special holding tank owned by Kaufman Milling. The holding tank contained a mechanism for agitating the liquid supplement, inasmuch as it was necessary to agitate the supplement prior to removing it from the tank so that a homogenized mixture would be fed to the livestock.

[28]*28As manufactured at plaintiff’s Muscatine, Iowa, plant, the Bovin-O-Lac 440 contained the fundamental acids, phosphates, urea and salt; the other additives, including vitamins, trace minerals, drugs and regular molasses had to be added at plaintiffs Sioux City, Iowa, plant. After being completely formulated, the Bovin-O-Lac 440 was transported from the Sioux City plant to the on-farm holding tanks in a truck owned by plaintiff. The truck was loaded and unloaded by hoses, but the holding compartments on the truck did not contain an agitation system.

Each delivery of Bovin-O-Lac 440 was accompanied by a tag which guaranteed the shipment to include a certain amount of protein, vitamins and minerals, including calcium, vitamin A and zinc.

In addition to the above described vitamins and minerals, defendants also ordered the additive diethylstilbestrol (stilbestrol) to be added to each delivery of Bovin-O-Lac 440. The supplement was formulated to insure a balanced diet for cattle on feed; one of plaintiffs witnesses testified that the presence of calcium, vitamin A and the trace mineral zinc in necessary quantities improved the gainability of cattle on feed and that if the vitamins and minerals were not present in balanced quantities the rate of gain would tend to be reduced. Defendant Jacob Stahl testified that he expected the stilbestrol to account for a fifteen to seventeen percent reduction in the cost of gain. One of plaintiffs witnesses testified that stilbestrol has the reputation for significantly increasing the rate of gain in cattle and that in the absence of this additive cattle would not gain as rapidly. Another of plaintiffs witnesses testified that the use of stilbestrol should result in an increase of from fifteen to seventeen percent in feed efficiency, i.e., the ability of cattle to convert feed into meat.

Toward the middle of February 1971, having fed the liquid supplement for approximately 45 to 50 days, defendants became dissatisfied with the appearance of the cattle in lots 1 and 2 because they did not appear to show the finish or the gain that the cattle in lot 3 were showing. Defendants made their dissatisfaction known to Mr. Kaufman, who requested that defendants continue to use the liquid supplement. Because of repeated [29]*29complaints by defendants, Mr.

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Related

American Property Services, Inc. v. Barringer
256 N.W.2d 887 (South Dakota Supreme Court, 1977)
Kent Feeds, Inc. v. Stahl
238 N.W.2d 483 (South Dakota Supreme Court, 1976)

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Bluebook (online)
238 N.W.2d 483, 90 S.D. 23, 1976 S.D. LEXIS 176, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kent-feeds-inc-v-stahl-sd-1976.