Land O'Lakes Purina Feed LLC v. Jaeger

976 F. Supp. 2d 1073, 2013 WL 5526994, 2013 U.S. Dist. LEXIS 145856
CourtDistrict Court, S.D. Iowa
DecidedOctober 7, 2013
DocketNo. 4:12-cv-00467-RAW
StatusPublished

This text of 976 F. Supp. 2d 1073 (Land O'Lakes Purina Feed LLC v. Jaeger) is published on Counsel Stack Legal Research, covering District Court, S.D. Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Land O'Lakes Purina Feed LLC v. Jaeger, 976 F. Supp. 2d 1073, 2013 WL 5526994, 2013 U.S. Dist. LEXIS 145856 (S.D. Iowa 2013).

Opinion

RULING ON PLAINTIFF’S MOTION FOR SUMMARY JUDGMENT

ROSS A. WALTERS, United States Magistrate Judge.

Plaintiffs Motion for Summary Judgment [14] is before the Court on papers filed. This is a collections case for which plaintiff Land O’Lakes Purina Feed LLC (“Land O’Lakes”) is seeking payment from defendant Luke Jaeger (“Jaeger”).

I.

UNDISPUTED FACTS

Land O’Lakes entered into a contract entitled “Customer Weaned Pig Purchase and Security Agreement” (“Agreement”) with Jaeger to sell him weaned pigs on credit for $38.00 per pig. (Pl.’s App. 2, Starke Aff. ¶ 5 [14-3]; PL’s App. 6-18, Ex. A Agreement [14-3]). It provided that Land O’Lakes would deliver approximately 2,400 to 2,450 weaned pigs every nine weeks for fourteen months. (PL’s App. 4, Starke Aff. ¶ 12 [14-3] (citing PL’s App. 7-8, Ex. A Agreement §§ 4, 6 [14-3])). In support of the agreement, Land O’Lakes and Jaeger also executed a “Credit Application and Agreement.” (See Pl.’s App. 2, Starke Aff. ¶ 6 [14-3] (citing PL’s App. 19-21, Ex. B Credit Application and Agreement [14-3])). The Credit Application and Agreement required Jaeger pay the invoiced amount, as well as late charges on any overdue amount at a rate of eighteen percent per year. (PL’s App. 2, Starke Aff. ¶ 6 [14-3]; PL’s App. 20, Ex. B Credit Application and Agreement § 3 [14-3]).

Land O’Lakes delivered 2,276 weaned pigs to Jaeger in July 2012. (PL’s App. 2, Starke Aff. ¶7 [14-3]; PL’s App. 22-23, Ex. C Invoice No. 87086984, Invoice No. 87092070 [14-3]). Jaeger accepted all of the pigs. (PL’s App. 3, Starke Aff. ¶ 10 [14-3]). Land O’Lakes billed Jaeger for the pigs received in July, splitting the costs between two invoices. Invoice number 87086984 was for the amount of $49,670.61, and it was due August 3. (PL’s App. 22, Ex. C. Invoice No. 87086984 [14-3]). Invoice number 87092070 was for the amount of $43,442.12, and it was due August 6. (PL’s App. 23, Ex. C. Invoice No. [1075]*107587092070 [14-3]). The total price of the July shipment was $93,112.73. Jaeger sent a check to Land O’Lakes for that amount. (Pl.’s App. 3, Starke Aff. ¶ 8 [14-3]). However, Jaeger’s bank dishonored his check because he did not have sufficient funds.(PL’s App. 3, Starke Aff. ¶ 8 [14-3]). Plaintiff did not otherwise pay for the July shipment. (PL’s App. 3, Starke Aff. ¶ 9 [14-3]).

II.

SUMMARY JUDGMENT STANDARD

Summary judgment is appropriate if the moving party establishes there are no genuine disputes over material facts, and it is entitled to judgment as a matter of law. Haigh v. Gelita USA, Inc., 632 F.3d 464, 467 (8th Cir.2011) (citing Fed.R.Civ.P. 56(a)). “A material fact is a fact that ‘might affect the outcome of the suit under governing law.’ ” See Hartnagel v. Norman, 953 F.2d 394, 395 (8th Cir.1992) (quoting Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986)); Teleconnect Co. v. Ensrud, 55 F.3d 357, 359 (8th Cir.1995)(quoting Anderson, 477 U.S. at 248, 106 S.Ct. 2505).

III.

LAW & APPLICATION

Jaeger has conceded he did not pay the amount due, and therefore, he is liable. (Def.’s Mem. of Law in Supp. of Resist. 2 [17-1]). But, Jaeger argues that factual disputes remain concerning whether Land O’Lakes mitigated its losses. (Id. [17-1]). Before the Court decides whether there is a factual dispute, the Court must determine if mitigation is required as a matter of law. Finally, Land O’Lakes is seeking eighteen percent contract interest through the date of judgment (“late charges”).1

A. Controlling Law: Does the Minnesota U.C.C. Govern?

A choice of law provision selecting Minnesota state law was included in both the Agreement and the Credit Application and Agreement. (PL’s App. 17, Agreement ¶29 [14-3]; PL’s App. 21, Credit Application and Agreement ¶ 12 [14-3]). The Court must determine whether the Minnesota Uniform Commercial Code (“U.C.C.”) or Minnesota common law applies.

The Court must apply the U.C.C. if it governs the dispute because the U.C.C. exclusively governs the sale of goods. Rector v. Elevator, No. A07-0693, 2008 WL 3287910, at *2-3, 2008 Minn.App.Unpub. LEXIS 952, at *6-7 (Minn.Ct.App. Aug. 12, 2008) (citing Hapka v. Paquin Farms, 458 N.W.2d 683, 688 (Minn.1990)). Only if the U.C.C. is inapplicable, may the Court consider the dispute under Minnesota common law.

Article 2 of the U.C.C. applies to the sale of goods. The contract at issue provides for the sale of weaned pigs. Minnesota Stat. § 336.2-105(1) defines “goods” as “all things (including specially manufactured goods) which are movable at the time of identification to the contract for sale[,] ... including] the unborn young of animals and growing crops ....” (emphasis added). The Court has not been presented with any Minnesota Supreme Court precedent on whether weaned pigs are within this definition of goods. However, at least one Minnesota court has applied the U.C.C. to a contracts governing the sale of animals. Mishek v. Mikkelson, No. C2-88-2298, 1989 WL 49268, at *1, 1989 Minn.App. LEXIS 599, [1076]*1076at *2 (Minn.Ct.App. May 8,1989) (applying the U.C.C. to the sale of a horse).2

The Minnesota Supreme Court has held that the Minnesota legislature adopted the U.C.C. in order to promote consistency between state laws. State Bank of Young America v. Vidmar Iron Works, Inc., 292 N.W.2d 244, 249 n. 2 (Minn.1980). As such, the Minnesota statute should be interpreted consistently with other jurisdictions. Id. The Northern District of Iowa, interpreting the Iowa U.C.C, which includes the same definition of “goods,” held that weaned pigs are included in the definition, and thus, such contracts are governed by the U.C.C. Purina Mills, L.L.C. v. Less, 295 F.Supp.2d 1017, 1031 (N.D.Iowa 2003).

This Court similarly holds that the sale of weaned pigs is included in the definition of “goods,” and the Minnesota U.C.C. governs the dispute.

B. Did the Minnesota U.C.C. Require Land O’Lakes to Mitigate its Damages?

Jaeger admits that he did not pay for the goods he accepted. The issue is whether the Minnesota U.C.C. required Land O’Lakes to mitigate its damages after Jaeger had already accepted the weaned pigs. The answer is no. Under the Minnesota U.C.C., after the breaching party has accepted the goods, the non-breaching party has no duty to mitigate its losses by accepting the return of the goods or proactively repossessing the goods without permission. In other words, because Land O’Lakes delivered the weaned pigs to Jaeger and Jaeger accepted the pigs, Land O’Lakes was not obligated to do anything else in order to recover the purchase price.

Article 2 and Article 9 of the U.C.C.

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Related

Anderson v. Liberty Lobby, Inc.
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Farmers Production Credit Ass'n v. Arena
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Hapka v. Paquin Farms
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Powell v. Anderson
660 N.W.2d 107 (Supreme Court of Minnesota, 2003)
State Bank of Young America v. Vidmar Iron Works, Inc.
292 N.W.2d 244 (Supreme Court of Minnesota, 1980)
Purina Mills, L.L.C. v. Less
295 F. Supp. 2d 1017 (N.D. Iowa, 2003)
F & P BUILDERS v. Lowe's of Texas, Inc.
786 S.W.2d 502 (Court of Appeals of Texas, 1990)
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976 F. Supp. 2d 1073, 2013 WL 5526994, 2013 U.S. Dist. LEXIS 145856, Counsel Stack Legal Research, https://law.counselstack.com/opinion/land-olakes-purina-feed-llc-v-jaeger-iasd-2013.