Valley View Farms v. BOS Dairy LLC

CourtDistrict Court, N.D. Indiana
DecidedJuly 15, 2024
Docket4:22-cv-00083
StatusUnknown

This text of Valley View Farms v. BOS Dairy LLC (Valley View Farms v. BOS Dairy LLC) is published on Counsel Stack Legal Research, covering District Court, N.D. Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Valley View Farms v. BOS Dairy LLC, (N.D. Ind. 2024).

Opinion

UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF INDIANA LAFAYETTE DIVISION

VALLEY VIEW FARMS, ) ) Plaintiff, ) ) v. ) Case No. 4:22-cv-83 ) BOS DAIRY LLC and ) HERREMA DAIRY LLC, ) ) Defendants. )

OPINION AND ORDER This matter is before the court on the Motion for Summary Judgment filed by the defendants, Bos Dairy LLC and Herrema Dairy LLC, on December 13, 2023. [DE 39]. For the following reasons, the defendants’ motion is DENIED. Background This is a case about silage—or, more precisely, excess silage, since the parties’ chief dispute concerns whether the plaintiff can show that any excess silage, beyond the amounts the defendants claim, ever existed. The plaintiff, Valley View Farms, initiated this case on October 21, 2022, against the defendants, Bos Dairy LLC and Herrema Dairy LLC, alleging breach of contract, unjust enrichment, and conversion, respecting two corn silage contracts. [DE 1]. On December 13, 2023, the defendants filed the instant Motion for Summary Judgment. [DE 39]. The plaintiff responded on January 31, 2023. [DE 41]. The defendants did not file a reply and the time to do so has passed. The parties filed forms of consent to have this case assigned to a United States Magistrate Judge to conduct all further proceedings and to order the entry of a final judgment. As a result, this court has jurisdiction to decide this case pursuant to 28 U.S.C. § 636(c). [DE 15]. Undisputed Material Facts Unless otherwise indicated, the following material facts are not in dispute. On January 14, 2022, the plaintiff, Valley View Farms (VVF), entered into two nearly identical contracts, one with defendant Bos Dairy LLC (Bos), and the other with defendant Herrema Dairy LLC (Herrema). [DE 39-1 at 5, ¶ 1]; (Pl.’s Compl., Ex. B and C). In each contract, VVF agreed to

plant specific portions of its farm land with corn—VVF would plant 250 acres of its land for Bos, and 460 acres of its land for Herrema [DE 39-1 at 5, ¶¶ 2-4]; (Pl.’s Compl., Ex. B and C). Bos and Herrema, in exchange, agreed to harvest and buy this corn as silage, a type of cattle feed made by collecting and fermenting whole corn stalks. Id. Bos and Herrema specifically agreed to harvest all of the corn grown on their portions of VVF’s land, to weigh this corn, assess its water content, and then buy the resulting silage crop from VVF at a price based on its measured weight and water content. Id. The parties agree that VVF, as promised, planted the corn before June 1, 2022. Id. The parties also agree that Bos and Herrema harvested all of the corn on their portions of VVF’s land

over several days starting on September 12, 2022. [DE 39-1 at 5, ¶ 8]; (Craig Dep., p. 17, 10-12). The parties disagree, though, about the amount of corn which Bos and Herrema collected during this harvesting process. [DE 41 at 4-6, ¶ 6-7]. Bos and Herrema maintain that their reported yields accurately account for all of the corn which they harvested. [DE 39-1 at 5, ¶ 6-7]. Bos reported its yield as about 18.3 adjusted tons of silage per acre, or 4,610 adjusted tons of silage total, and Herrema reported its yield as about 16.7 adjusted tons of silage per acre, or 7,712 adjusted tons of silage total. Id. These reported yields are not in actual tons. Rather, pursuant to the parties’ contracts, each defendant was to buy its silage crop from VVF at a price per ton of adjusted weight—this adjusted weight representing what the silage crop would weigh if it consisted of 34% dry matter and 66% moisture. [DE 39-1 at 6, ¶ 12]; (Pl.’s Compl. Ex. B and C). To calculate this measure, each defendant was to weigh its silage crop in tons, assess the crop’s water content, and then adjust the measured weight up or down in accordance with the crop’s water content, to approximate what the silage crop would weigh at the agreed-upon dry matter and moisture ratios. Id.

VVF agrees that the defendants properly weighed and assessed the water content of some of the silage crop harvested from its land in 2022. [DE 41 at 7-8, ¶ 10-12]. Instead, VVF alleges that after harvesting all of the silage present on its land, Bos and Herrema deliberately failed to weigh some portion of it—the alleged excess silage—on their scales, making the defendants’ reported yields too low. [DE 41 at 7, ¶ 10]. This failure to weigh the entire silage crop, VVF claims, allowed Bos and Herrema to divert the excess silage to their own use without the agreed- upon payment. Id. From a review of the record, there is some evidence which suggests that VVF’s land may have contained more corn than Bos and Herrema suggested in their reported yields.

First, before harvesting began, VVF requested that its insurer, Rural Community Insurance Company (RCIS), estimate the amount of corn growing on its land. (Corning Dep., pp. 23-25). An RCIS appraiser, Gary Corning, performed an assessment on the land allotted to Bos on either August 30 or 31, 2022, and an assessment on the land allotted to Herrema on September 6, 2022. (Corning Dep., pp. 25-28, 35). Corning’s method involved taking sample corn stalks, weighing the stalks, and then using their average weight to estimate the amount of silage which each acre of land would produce. (Corning Dep., p. 26, 7-9; pp. 73-74). Corning took ten samples from the land allotted to Bos and fifteen samples from the land allotted to Herrema. (Corning Dep., pp. 71, 74). After weighing the sample corn stalks, Corning estimated that the land allotted to Bos would produce about 26.7 tons of silage per acre and that the land allotted to Herrema would produce about 27.6 tons of silage per acre. (Corning Dep. Ex. 7 and 8). Second, VVF’s farmland has yielded far more corn silage than Bos and Herrema claim it did in 2022. In 2021, for example, RCIS estimated that the land allotted to Bos was likely to

yield about 25.9 tons of silage per acre, and it estimated that the land allotted to Herrema was likely to yield about 25.7 tons of silage per acre. (Mercier Decl. Ex. 1). Third, VVF’s farmland is located in Jasper County, Indiana, and farms located in this area generally yielded more silage in 2022 than Bos and Herrema claim VVF’s farmland did. According to data from the USDA National Agricultural Statistics Service, in 2022 the average Jasper County farm growing corn yielded about 22.4 tons of silage per acre of land. (Lauer Decl. Ex. 1, pp. 3-4). And fourth, after the harvest, VVF hired Matt G. Lauer, an agronomy professor from the University of Wisconsin-Madison, to assess the amount of silage which had grown on its land

during the 2022 season. By analyzing ears of corn harvested from VVF’s land, and the number of kernels on these ears, Professor Lauer estimated that VVF’s land yielded between 22.8 to 31.2 tons of silage per acre in 2022. (Lauer Decl. Ex. 1, pp. 4-5). After harvesting ended for the 2022 season, the parties failed to agree on the amount of payment due under their contracts. VVF, insistent that the defendants’ reported yields did not account for all of the silage which they harvested refused to accept payment based only on those reported yields. Bos and Herrema maintained that their reported yields accounted for all of the silage and refused to pay for any excess silage. VVF subsequently commenced this suit by filing a complaint on October 21, 2022. [DE 1]. VVF alleges that the defendants’ failure to account for all of their harvested silage violated Indiana state law, and it asserts claims for breach of contract, unjust enrichment, and criminal conversion under Ind. Code § 35-43-4-3. Discussion Under Federal Rule of Civil Procedure

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Valley View Farms v. BOS Dairy LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/valley-view-farms-v-bos-dairy-llc-innd-2024.