Larry Leonhardt, Dan Laursen, and Rick Rodriquez, Rodriquez Farms, Inc. v. Western Sugar Company, a Corporation

160 F.3d 631, 42 Fed. R. Serv. 3d 238, 1998 Colo. J. C.A.R. 6149, 1998 U.S. App. LEXIS 28460, 1998 WL 789494
CourtCourt of Appeals for the Tenth Circuit
DecidedNovember 13, 1998
Docket97-8078
StatusPublished
Cited by71 cases

This text of 160 F.3d 631 (Larry Leonhardt, Dan Laursen, and Rick Rodriquez, Rodriquez Farms, Inc. v. Western Sugar Company, a Corporation) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Larry Leonhardt, Dan Laursen, and Rick Rodriquez, Rodriquez Farms, Inc. v. Western Sugar Company, a Corporation, 160 F.3d 631, 42 Fed. R. Serv. 3d 238, 1998 Colo. J. C.A.R. 6149, 1998 U.S. App. LEXIS 28460, 1998 WL 789494 (10th Cir. 1998).

Opinion

STEPHEN H. ANDERSON, Circuit Judge.

Plaintiffs, Wyoming sugar beet farmers, appeal the dismissal of their class action against defendant, Western Sugar Company. Plaintiffs’ federal cause of action, alleging a violation of the Agricultural Fair Practices Act (“AFPA”), was dismissed for failure to state a claim. Because not all members of the class satisfied the $75,000 jurisdictional amount required under 28 U.S.C. § 1332 for a diversity action, the court declined to exercise supplemental jurisdiction over plaintiffs’ state law claims and dismissed them without prejudice. This appeal followed. We affirm, holding as follows on the central issues presented: 1) the district court correctly held that plaintiffs’ complaint failed to state a claim under AFPA; and 2) because only one plaintiffs claim satisfied the $75,000 jurisdie- *633 tional amount, and because 28 U.S.C. § 1367 has not overturned the historical rule under 28 U.S.C. § 1332 that plaintiffs in a diversity-class action must each satisfy that jurisdictional amount, the district court correctly dismissed plaintiffs’ state law claims without prejudice.

BACKGROUND

The plaintiffs are Wyoming farmers who grow sugar beets under contract for Western Sugar Company, a Colorado corporation. Each farmer had four separate contracts with Western Sugar covering crop years 1985-87, 1988-90, 1991-92, and 1993-95. In accordance with those contracts, the Wyoming farmers delivered beets to Western Sugar’s Lovell facility, where they were put in a pile and weighed. Because sugar beets can lose their sugar over time, a phenomenon referred to as “pile loss,” Western Sugar took samples from and measured the sugar content of each grower’s beets both at the time they were delivered and at the time they were processed. The latter samples, taken from sliced sugar beets at the beginning of the manufacturing process, are referred to as “factory cossette samples.” The difference in sugar content between the samples taken at the time of delivery and the factory cossette samples is referred to as the “polarity difference,” or “PD.” The PD was used to calculate payments under the contracts, which were based on the market price of sugar, the weight of beets delivered, and the sugar content of each grower’s beets.

Plaintiffs contend that the manufacturing process used at the Lovell facility permitted too many adulterants, such as water and soil, to adhere to the sliced beets that were used for the factory cossette samples. The presence of these adulterants lowered the sugar content measurement, thereby increasing the PD. This, in turn, lowered the payments the growers received under their contracts.

Based on this contention, the plaintiffs brought suit on behalf of themselves and all persons who grew sugar beets under contract for Western Sugar between 1985 and 1995. The complaint asserted federal claims under the Sherman Act and AFPA, as well as five state law claims, alleging breach of contract, breach of an implied duty of good faith and fair dealing, breach of fiduciary duty, promissory estoppel, and a violation of the Wyoming Weights and Measurers Act, Wyo. Stat. Ann. §§ 40-10-117 to -136 and its predecessor, Wyo. Stat. Ann. §§ 40-10-101 to -116 (repealed 1993). At the time of the district court ruling at issue on appeal, the only claims remaining in the suit were a single federal claim under AFPA and the state law claims. 1 The plaintiffs made no allegations that their freedom to join or not join any association or cooperative was in any way hindered by Western Sugar.

The district court dismissed the AFPA claim for failure to state a claim. The court determined that no plaintiffs remaining state claims met the $75,000 amount in controversy necessary for the exercise of diversity jurisdiction under 28 U.S.C. § 1332. Before the court, however, was a pending motion to amend the complaint to add a prayer for punitive damages to one of the state claims. If granted, this amendment would increase the potential recoverable damages of plaintiff Rodriquez Farms, Inc. to $75,000 or more. The court denied the motion to amend as futile, reasoning that, even if Rodriquez Farms could meet the jurisdictional limit, the court could not exercise supplemental jurisdiction over the claims of the remaining plaintiffs. Therefore, the court dismissed plaintiffs’ state law claims without prejudice, and this appeal followed.

DISCUSSION

1. Appellate Jurisdiction Over Rodriquez Farms

As an initial matter, we must consider whether we have jurisdiction over the claims of Rodriquez Farms, Inc. Federal Rule of Appellate Procedure 3(c) provides that “[a] notice of appeal must specify the party or parties taking the appeal by naming each appellant in either the caption or the body of the notice of appeal.” The caption of the notice of appeal here contains the names of only the three individual named plaintiffs, *634 and not the name of Rodriquez Farms, another named plaintiff below. Both the docketing statement and the caption of appellants’ opening brief also omit Rodriquez Farms as a named appellant. The body of the notice of appeal, however, states that “[n]otice is hereby given that all of the plaintiffs in the above named case hereby appeal,” and the notice of appeal is signed by John M. Cogswell, Esq., who represented all four plaintiffs in the district court.

Plaintiffs contend that Rodriquez Farms is properly an appellant under Rule 3(c), and they move to amend the caption to reflect the inclusion of Rodriquez Farms. Rule 3(c) provides that “[a]n attorney representing more than one party may fulfill th[e] requirement [to specify the parties taking the appeal] by describing those parties with such terms as ‘all plaintiffs.’ ” Such a description will be sufficient if “it is objectively clear that a party intended to appeal.” Fed. R.App. P. 3(c) advisory committee’s note (1993). We agree with plaintiffs that it is objectively clear that Rodriquez Farms intended to appeal the district court’s order, especially in light of the fact that it is the only plaintiff capable of meeting the $75,000 amount in controversy necessary for diversity jurisdiction. We turn, then, to the merits of plaintiffs’ appeal.

2. AFPA Claim

In 1968, Congress enacted AFPA, 7 U.S.C. §§ 2301-2306, to “protect[ ] the right of farmers and other producers of agricultural commodities to join cooperative associations through which to market their products.” Michigan Canners & Freezers Ass’n v. Agricultural Mktg. & Bargaining Bd., 467 U.S. 461, 464, 104 S.Ct.

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160 F.3d 631, 42 Fed. R. Serv. 3d 238, 1998 Colo. J. C.A.R. 6149, 1998 U.S. App. LEXIS 28460, 1998 WL 789494, Counsel Stack Legal Research, https://law.counselstack.com/opinion/larry-leonhardt-dan-laursen-and-rick-rodriquez-rodriquez-farms-inc-v-ca10-1998.