Sanderson Farms, Inc. v. Ballard

917 So. 2d 783, 2005 WL 2458713
CourtMississippi Supreme Court
DecidedOctober 6, 2005
Docket2002-IA-01938-SCT, 2003-IA-02490-SCT
StatusPublished
Cited by33 cases

This text of 917 So. 2d 783 (Sanderson Farms, Inc. v. Ballard) is published on Counsel Stack Legal Research, covering Mississippi Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sanderson Farms, Inc. v. Ballard, 917 So. 2d 783, 2005 WL 2458713 (Mich. 2005).

Opinion

917 So.2d 783 (2005)

SANDERSON FARMS INC. (Production Division)
v.
Tanya BALLARD, Rann McGraw and Willie McIntosh
Sanderson Farms, Inc.
v.
Kenny Austin, Charlett Hathorn and Leroy Spring.

Nos. 2002-IA-01938-SCT, 2003-IA-02490-SCT.

Supreme Court of Mississippi.

October 6, 2005.

*784 W. Scott Welch, III, Robert M. Frey, Jackson, Joe Dale Walker, Monticello, James Lawton Robertson, Henry E. Chatham, Jr., Jackson, attorneys for appellant.

John Dudley Butler, attorney for appellees.

Before WALLER, P.J., EASLEY and CARLSON, JJ.

EASLEY, Justice, for the Court.

PROCEDURAL HISTORY

¶ 1. On September 26, 2000, Tanya Ballard, Willie McIntosh, and Rann McGraw, individually and as class representatives (Ballard), independent contractor broiler growers, filed suit against Sanderson Farms, Inc. (SF) in the Chancery Court of Lawrence County, Mississippi. On August 2, 2002, Kenny Austin, Charolett N. Hathorn, and Leroy Spring, individually and as class representatives (Austin), independent contractor hatching egg growers, filed suit against Sanderson Farms, Inc. (SF) in the Chancery Court of Jefferson Davis County, Mississippi. The Plaintiffs in both the Ballard and Austin actions were represented by the same attorneys at trial and now on appeal. SF, however, was represented by different counsel in the two actions at trial, as well as, on appeal. The Honorable J. Larry Buffington, Chancellor, presided over both the Ballard action and the Austin action.

¶ 2. In the Ballard action, SF removed the case to federal court and answered the first amended complaint. The case was remanded to the chancery court. Ballard received leave of court to file a second amended complaint. SF answered the second amended complaint and raised the following defenses: (1) that the parties had agreed to arbitrate; (2) that the circuit court, not the chancery court, had jurisdiction; and (3) that venue was improper. SF also raised the defense that Ballard's claims were barred by statute of limitations, the plaintiffs were misjoined, and the plaintiffs could not represent a class.

¶ 3. The trial court denied all of SF's affirmative defenses, including, arbitration, *785 subject matter jurisdiction, venue, and statute of limitations. SF filed its petition for permission to appeal from interlocutory order and emergency motion to stay. The trial court denied the petition for certification and stay. This Court granted SF's request for interlocutory appeal. See M.R.A.P. 5.

¶ 4. In the Austin action, SF responded to the Plaintiffs' complaint filed by filing its motion to dismiss and/or to transfer jurisdiction and/or to compel arbitration and/or for change of venue. On June 7, 2004, the trial court entered its order overruling SF's motion to dismiss, transfer, compel arbitration and for change of venue. Based on SF's ore tenus motion to modify or amend the trial court's order the trial court entered its order amending the June 7th order to certify the order for interlocutory appeal in accordance with M.R.A.P. 5(a) and stay all further proceedings pending this Court's action. This Court entered its order accepting SF's notice of appeal and dismissing the alternative petition for interlocutory appeal as moot.

¶ 5. This Court consolidated the Austin appeal with the Ballard appeal and stayed all trial court proceedings pending the outcome of the appeal.

FACTS

¶ 6. SF, based in Laurel, Mississippi, has three operating subsidiaries: SF (Food Division), SF (Processing Division), and SF (Production Division). The SF (Production Division) has five operating divisions in Laurel, Collins, Hazlehurst, and McComb, Mississippi, and in Bryan, Texas. The contract growers are divided into three categories: (1) pullet growers, (2) hatching egg or breeder growers, and (3) broiler growers.

¶ 7. Both the Ballard (broiler growers) and the Austin (hatching egg growers), collectively "the Plaintiffs", argue on appeal that the two cases involve claims that SF "fraudulently or negligently induced them and other similarly situated growers to enter into contracts to raise chicken flocks by making false representations about their potential incomes and the costs and requirements involved."

¶ 8. In the Austin action, SF asserts that the introduction of long term contracts were introduced due to the growers' desire to have more financial security than provided by the flock-to-flock agreements. Many of the concerns in the industry came before the Mississippi Legislature in 1996. Independent of SF's process for developing new agreements with its growers, representatives of the poultry manufacturers and representatives for the growers began a series of meetings. The Governor's Special Poultry Committee considered contract issues that were raised by producers and growers.[1]

¶ 9. SF scheduled meetings with its some 600 growers, 110 of which were hatching egg growers. Meetings with growers in each of SF's divisions were scheduled in various towns: Laurel, Collins, Hazlehurst and McComb. On November 19, 1996, the Governor's Special Poultry Committee published a series of agreements on various issues. Each poultry company was to have some type of a long-term contract.

¶ 10. The SF growers were sent a memorandum addressed by grower spokesman, Mike Ballard, husband of Tanya *786 Ballard, the lead plaintiff in the Ballard action. The memorandum advised the growers to consult an attorney to review the long-term contract before attending the meeting with SF and committing to the long-term agreement. The growers were also advised that they could bring their attorneys to the meeting. The growers were instructed to pay close attention to the questions raised about arbitration and certain phrases in the contract.

¶ 11. On December 30, 1996, Sanderson sent a letter to the growers inviting them to a group meeting to discuss the proposed new long-term contracts. SF asserts that each grower was sent a copy of the draft agreement, invited to consult an attorney, and bring a lawyer to the meeting. The group meetings for the hatching egg growers (Austin) regarding the new proposed contracts took place on January 15/16, 1997. The hatching egg contracts (Austin) were signed and became effective February 1, 1997. The broiler (Ballard) contracts were signed and became effective January 1, 1997.

¶ 12. On appeal, SF contends, in the Ballard action, that the Plaintiffs' suit is an attack on vertical integration by attacking an essential part of that system, the nearly-universal (and federally-regulated) practice of ranking broiler growers on objective measures of performance and rewarding the growers that perform best. SF defines vertical integration as a system where the company/processor supplies inputs such as the chicks, the feed and medicine, furnishes technical advice, catches the chickens, transports the chickens to the processing plant, processes the chicken, and sells the chicken. The grower/farmer supplies the chicken houses and the skilled labor. The growers' pay is based upon a competitive scale where the growers are ranked upon their standardized costs, i.e., the more efficiently a flock is grown (the lower the standard production cost per pound), the higher the grower is ranked.

¶ 13. SF argues that ranking is essential to provide the growers incentive to make efficient use of the company-supplied inputs in order for vertical integration to work.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Killen v. Johnson & Johnson
S.D. Mississippi, 2022
The Commercial Bank v. Smith Shellnut Wilson LLC
270 So. 3d 136 (Court of Appeals of Mississippi, 2018)
Culpepper Enterprises Inc. v. Joseph R. Parker
270 So. 3d 116 (Court of Appeals of Mississippi, 2018)
Monty Y. Brown v. George C. McKee
242 So. 3d 121 (Mississippi Supreme Court, 2018)
Brenda Crater v. Bank of New York Mellon
203 So. 3d 16 (Court of Appeals of Mississippi, 2016)
Mary J. Archer v. Mitchell J. Creel
217 So. 3d 690 (Court of Appeals of Mississippi, 2016)
Person v. Denbury Onshore, LLC
122 So. 3d 810 (Court of Appeals of Mississippi, 2013)
Trustmark National Bank v. Meador
81 So. 3d 1112 (Mississippi Supreme Court, 2012)
James v. Tyson Foods, Inc.
2012 OK 21 (Supreme Court of Oklahoma, 2012)
Sullivan v. Tullos
19 So. 3d 1271 (Mississippi Supreme Court, 2009)
Weathers v. Metropolitan Life Insurance
14 So. 3d 688 (Mississippi Supreme Court, 2009)
Fletcher v. Lyles
999 So. 2d 1271 (Mississippi Supreme Court, 2009)
Quezada v. State
992 So. 2d 916 (District Court of Appeal of Florida, 2008)
Pope v. Sorrentino
992 So. 2d 1194 (Court of Appeals of Mississippi, 2008)
Monty C. Fletcher v. Jimmie L. Lyles
Mississippi Supreme Court, 2007
Billy Mack Sullivan v. Eugene C. Tullos
Mississippi Supreme Court, 2007

Cite This Page — Counsel Stack

Bluebook (online)
917 So. 2d 783, 2005 WL 2458713, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sanderson-farms-inc-v-ballard-miss-2005.