Vermont Food Industries, Inc. v. Ralston Purina Co.

514 F.2d 456, 1975 U.S. App. LEXIS 15501
CourtCourt of Appeals for the Second Circuit
DecidedMarch 24, 1975
Docket519, Docket 74-1823
StatusPublished
Cited by9 cases

This text of 514 F.2d 456 (Vermont Food Industries, Inc. v. Ralston Purina Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Second Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Vermont Food Industries, Inc. v. Ralston Purina Co., 514 F.2d 456, 1975 U.S. App. LEXIS 15501 (2d Cir. 1975).

Opinion

OAKES, Circuit Judge:

This appeal is from a judgment after a special verdict in favor of an egg producer, Vermont Food Industries,. Inc., in its suit against the appellant poultry feed manufacturer, Ralston Purina Co. The egg producer’s claim was that the feed supplied to it by Ralston Purina in its “Life Cycle Feeding Program” contained an improper nutritional balance, resulting in obesity and “fatty liver syndrome” in appellee’s laying hens, thereby reducing egg production and requiring the ap-pellee to purchase eggs in the open mar *458 ket in order to supply its various supermarket customers in and about Vermont. Egg production from seven separate flocks, six in Vermont and one in Maine, was involved. Recovery was had for breach of implied warranties of merchantability and fitness for a particular purpose. 1 Judgment was entered in the United States District Court for the District of Vermont, Albert W. Coffrin, Judge, in the amount of $298,870 before reduction of a stipulated amount of indebtedness by the appellee to the appellant in the amount of $136,750.84 for feed and chickens provided by the appellant.

On this appeal, Ralston Purina does not put all of its eggs in one basket: it argues that the evidence was insufficient to sustain any verdict for the appellee; that the quantum of damages was so speculative and conjectural that it should not have been submitted to the jury; that the trial court erred in admitting the response of one of appellee’s several expert witnesses, Dr. Edmund Hoffman, to a hypothetical question which it is argued lacked proper foundation in the record; and that it was error to exclude proof offered by the appellant as to the absence of similar complaints over a five-year period during which it had annually sold approximately a million tons of chicken feed that it claimed conformed to uniform nutritional standards. We affirm the judgment.

I. THE SUFFICIENCY OF THE EVIDENCE

Ralston Purina, the “largest poultry feed manufacturer in the world” (Appellant’s Brief at 1), after certain field tests and research over a period of three years, substituted the so-called “Life Cycle Program” for its previous feed program for laying hens, nationally in March and April of 1971. The purpose of the new feed program, as testified to by the general manager of Ralston’s General Poultry Research Department, Dr. David Snetsinger, was to reduce “ingredient cost without sacrificing performance,” this being done by lowering protein levels and using better balanced amino acids and some synthetic vitamins.

The effectiveness of a feed program for chickens is related to three factors: protein level, energy (calorie) content, and amino acid balance. Much simplified, the key to the Ralston Purina program was, according to its experts, reducing protein levels while providing a new amino acid balance. The “Life Cycle” program, for example, had four phases. A starter feed with 18 per cent minimum guaranteed protein was fed to chicks from 0 to six weeks of age; a “Growena No. 1” feed with a minimum protein guarantee of 15 per cent was fed during the six to 12 week period of development; and a “Growena No. 2” feed with a minimum 12 per cent guarantee was fed to pullets from 12 to 20 weeks of age. 2 This was then followed by a laying ration which called for 14 per cent protein. 3

From an economic point of view, the key to the hoped-for effectiveness of the appellant’s Life Cycle program was that it could reduce the expensive protein content in the feed while a proper amino acid balance was maintained. 4 Since *459 some amino acids can be supplied synthetically (and relatively inexpensively) the feed would therefore be more economical. As Dr. Snetsinger put it, “By furnishing more amino acids to the protein content of the ration, we come up with a less costly production of a dozen eggs.” A potential side effect of the low protein content of the feed, crucially at issue here, was that there would be a corresponding increase in the caloric or “energy” content of the feed. A high energy-low protein feed without a proper amino acid balance did, appellee’s evidence indicated, result in lowered egg production, small egg size, and excessively fat birds, with fatty livers.

The appellee, a LeRiche family corporation, which started using the appellant’s “Life Cycle” feed in the latter part of 1971, had three modern egg producing buildings in Vermont, Complexes “A,” “B” and “C,” and another reconstructed building, called the Homosote house. The Homosote house housed a flock which were sister birds to those in Complex B in 1972. The “Homosote flock” was referred to throughout the trial, at least by appellee’s experts, as a control flock because while the conditions and environmental factors of both the Homo-sote house and the new complexes were identical for all practical purposes, the Homosote flock was on feed supplied by the Pease Grain Co. of Burlington, Vermont. That Pease feed contained a higher protein level (18 per cent minimum) and hence lower caloric level than the feed supplied to the other birds in the A, B and C complexes. The appellee also had a flock in Maine, the “Dostie” flock, started on the appellant’s feed program in late 1970.

The appellee’s proof concerned seven flocks which were identified according to the laying house complex which they occupied: Flocks A-l and A — 2 were of different genetic strains but in the A house at the same time; B — 2 and C — 2 respectively succeeded flocks B — 1 and C — 1; however, flock C — 1 having completed its laying cycle had been sold for meat. These were the six Vermont flocks. 5 Flocks B-2 and C-2 were the only flocks in issue fed the Life Cycle feed from the time they were hatched. Various nutritionists and veterinarians at the University of Vermont and the University of Connecticut diagnosed the birds in these flocks as being obese and having fatty liver syndrome, which is associated with low egg production. The contrast between the B — 2 flocks and the Homosote or control flock borne out by the production records was rather remarkable and perhaps the heart of the appellee’s case. The B — 2 birds and the Homosote birds were both baby chicks together and grown together, hence “sister” birds. The B — 2 birds were fed the appellant’s feed with a 15 per cent minimum protein tag while the Homosote birds were fed the 18 per cent protein feed supplied by the Pease Co. Both groups of birds were housed at the same time, and they looked equally good at that time.

Subsequently the B-2 birds not only looked extraordinarily fat but several *460 autopsies showed them to be grossly obese, excessively fat and slippery, and greasy to handle. They had what was described by appellee’s experts as fatty liver syndrome, that is, varying degrees of fattiness of the liver and other organs, together with very low egg production. A chart kept of the production of the B — 2 birds from April, 1972, until they were sold at the end of February, 1973, the chart being an H & N “Nick Chick” performance goal chart, 6

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Bluebook (online)
514 F.2d 456, 1975 U.S. App. LEXIS 15501, Counsel Stack Legal Research, https://law.counselstack.com/opinion/vermont-food-industries-inc-v-ralston-purina-co-ca2-1975.