TDM Farms, Inc. of North Carolina v. Wilhoite Family Farm, LLC

969 N.E.2d 97, 2012 WL 2051090, 2012 Ind. App. LEXIS 272
CourtIndiana Court of Appeals
DecidedJune 7, 2012
Docket79A02-1101-PL-33
StatusPublished
Cited by5 cases

This text of 969 N.E.2d 97 (TDM Farms, Inc. of North Carolina v. Wilhoite Family Farm, LLC) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
TDM Farms, Inc. of North Carolina v. Wilhoite Family Farm, LLC, 969 N.E.2d 97, 2012 WL 2051090, 2012 Ind. App. LEXIS 272 (Ind. Ct. App. 2012).

Opinion

OPINION

NAJAM, Judge.

STATEMENT OF THE CASE

TDM Farms, Inc. of North Carolina and Dale Johnson (collectively, “TDM”) 1 bring this interlocutory appeal from the trial court’s denial of their motion for summary judgment against Wilhoite Family Farm, LLC (“Wilhoite”). Wilhoite had filed suit against TDM alleging nuisance, negligence, and trespass after TDM intentionally introduced a highly contagious virus— the Porcine Reproductive and Respiratory Syndrome (“PRRS”) — to its hog farm, which then spread to Wilhoite’s neighboring hog farm and caused significant loss. On appeal, TDM contends that summary judgment is appropriate because Wilhoite’s claims are either preempted by the federal Virus-Serum Toxin Act (“the VSTA”), 21 U.S.C. §§ 151-159, or they are barred by Indiana’s Right to Farm Act, Ind.Code § 32-30-6-9.

We hold that Wilhoite’s claims are outside the scope of the VSTA and corresponding federal regulations. We also hold that the Right to Farm Act does not apply on these facts. Thus, we affirm the trial court’s denial of summary judgment.

FACTS AND PROCEDURAL HISTORY 2

TDM is a North Carolina-based commercial hog farming operation. Its primary breeding facilities and sow herds are in North Carolina. But once a pig is weaned from its mother, TDM ships the pig to a “finishing farm” where the pig is *100 grown to market weight: TDM currently has about forty finishing farm contracts in Indiana, which, before 2008, included a contract with Dale Johnson for use of his farm in Tippecanoe County (“the Johnson farm”).

In January of 2008, one of TDM’s North Carolina farms (“TDM #5”) broke out with PRRS. PRRS is a highly contagious porcine virus believed to have hundreds, if not thousands, of different genetic strains. The virus can be spread in a number of ways: by contact with an infected pig; in útero from an infected mother to her fetus; or by contact with an area, such as a barn, shipping truck, or farmer, that was recently contacted by an infected pig. It is believed that insects and birds are capable of spreading the virus and, while “difficult to document,” a leading theory suggests that PRRS is an airborne virus. See Appellant’s App. at 515-16. Once a herd is infected, the virus tends to remain for an extended period of time. Along with respiratory symptoms, a pregnant sow infected with PRRS can have a spontaneous abortion, a still birth, weak piglets, and decreased future reproductivity. This, of course, results in serious financial harm to farmers.

There is no consensus among veterinarians on how to control, treat, and eradicate PRRS. One recognized method is to establish a “gilt acclimation facility” in which immature female swine (gilts) are segregated from the herd, immunized against a particular PRRS strain via inoculation, and then grown to market weight. See id. at 529-30. Once mature and immunized, the sows are reunited with the herd at a breeding facility, and piglets born to those immunized sows inherit the immunization.

In response to the outbreak at TDM #5, TDM renegotiated its contract with Dale Johnson to use the Johnson farm as a gilt acclimation facility. TDM chose the Johnson farm based on numerous favorable circumstances, including the farm’s design and size, but also because of its proximity to other breeding stocks owned by TDM and its proximity to feed mills and other finishing farms. TDM prepared a serum based on the PRRS strain at TDM # 5, shipped gilts from Illinois to the Johnson farm, and inoculated the gilts. The gilts then became immunized to that strain of PRRS and were eventually shipped to the breeding farms in North Carolina.

In July of 2009, Wilhoite’s farm broke out with a strain of PRRS that is more than 99% genetically identical to TDM’s strain. Wilhoite’s farm is about three-quarters of a mile from the Johnson farm, and Wilhoite was never notified by TDM that it had introduced the highly contagious virus to the Johnson farm. As a result of the PRRS outbreak, Wilhoite suffered an estimated loss of $275,000.

On August 11, 2009, Wilhoite filed suit against TDM alleging nuisance, negligence, and trespass. In relevant part, Wilhoite’s complaint alleged as follows:

6. ... [W]hen a herd contracts PRRS “biosecurity” measures must be undertaken, and, in the worst case, a herd can be lost and a facility shut down for decontamination and protection against further contagion.
7. It is the custom and practice in the hog industry, for both operators and their veterinary consultants, to alert neighboring or potentially affected operations of the outbreak of PRRS.... Prompt notice and containment procedures minimize loss from PRRS or its spread.
* * ⅝
Count I Nuisance
* ⅜ *
*101 15. The conduct of the hog farming operations of TDM at [the Johnson farm] constitutes a nuisance, as defined by Indiana law.
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Count II Negligence
sfc ⅜ ⅜
19. TDM had and has a duty to conduct it[s] use and control of the property [the Johnson farm] in a reasonably safe and responsible fashion, as would similarly situated individuals, and in accord with accepted custom and practice of the relevant agricultural community.
20. TDM breached that duty owed to Wilhoite.
* * *
Count III
Trespass
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24. Through its reckless or negligent conduct TDM has caused a dangerous pathogen to enter the property of Wil-hoite.
25. This trespass has caused economic and other losses to Wilhoite which are continuing....

Id. at 21-24.

At his ensuing deposition, Alan Wilhoite, the owner of Wilhoite, testified that the purpose for his lawsuit was “[t]o ensure that [TDM] no longer continue[s] ... this blood serum vaccine from North Carolina, and to help ensure that I have a relatively reasonable chance that I won’t be reinfected with the PRRS virus.” Id. at 225. Likewise, Wilhoite’s veterinary expert, Dr. Jeffrey Harker, testified that “[t]he only unreasonable conduct I see is that ... the virus was brought in a vial and not on a pig.” Id. at 279. Wilhoite’s second veterinary expert, Dr. John Baker, agreed that the “[d]eliberate infection of animals at an otherwise healthy site with blood serum known to be carrying the PRRS virus poses a substantial and unnecessary risk that the infections will spread to other sites.” Id. at 262.

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969 N.E.2d 97, 2012 WL 2051090, 2012 Ind. App. LEXIS 272, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tdm-farms-inc-of-north-carolina-v-wilhoite-family-farm-llc-indctapp-2012.