Volentine v. Raeford Farms of Louisiana, L.L.C.

121 So. 3d 742, 2013 WL 3816430, 2013 La. App. LEXIS 1497
CourtLouisiana Court of Appeal
DecidedJuly 24, 2013
DocketNo. 48,219-CA
StatusPublished
Cited by7 cases

This text of 121 So. 3d 742 (Volentine v. Raeford Farms of Louisiana, L.L.C.) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Volentine v. Raeford Farms of Louisiana, L.L.C., 121 So. 3d 742, 2013 WL 3816430, 2013 La. App. LEXIS 1497 (La. Ct. App. 2013).

Opinion

CARAWAY, J.

|! Plaintiff egg producer appeals the summary judgment which dismissed claims for breach of contract and unfair trade practices filed against a poultry company and two individual employees. The contracts between the parties had been in force for a number of years when the defendants determined to end the contracts by the exercise of an at-will termination provision. The defendants assert that the contracts were terminated in good faith due to the mismanagement of the farm by plaintiff. Finding material issues of fact, we reverse.

[744]*744 Facts

In January of 2004, Dan and Diane Vo-lentine (hereinafter “Plaintiffs”), entered into two Hatching Egg Production Contracts (hereinafter collectively the “Contract”) with Raeford Farms of Louisiana LLC (“Raeford”), for the raising and management of breeder hens for egg production. Dan Volentine (“Volentine”) was classified as a breeder farmer who managed the parent flock which produces eggs for the broiler crop, sold to consumers. The male and female chickens provided to Volentine produced eggs received by Rae-ford that were later hatched and raised as broilers.

Under the Contract, Volentine was required to provide housing, labor and equipment. Raeford agreed to provide flocks, feed and medication to Volentine. Volentine was paid for housing the chickens and egg production and awarded “hatchability” and feed conversion bonuses for certain levels of production. The breeder flock life period with the producer farms is 12about 44 weeks, after which time the flock is removed and a new flock delivered. The Contract provided no term of years for the parties’ agreement.

In carrying out the Contract, Volentine dealt with Raeford employees, Samuel Le-Narz, Live Operations Manager, and Kelly Garris, Breeder Manager for Raeford Farms. Inspections of the farm by Rae-ford employees occurred on a continuous basis. Garris participated in some of the inspections of the Volentine farm but the majority of them were done by another Raeford employee, Chris Ovitt.

In late spring (May 11) and early summer (June 8) of 2007, two catastrophic events occurred at the Volentine farm because of electrical power losses. Six thousand hens were lost. In response, Raeford requested correction of substandard conditions for the housing including the replacement of electrical breakers which regulated the temperature of the chicken houses.

By August of 2007, Raeford threatened to withhold placement of chickens due to uncorrected farm deficiencies. Specifically, Raeford required Volentine to install a working alarm system and noted issues with feed lines, feeding, water line, cool cells and fans. When the alarm system was not installed, Raeford withheld flock delivery scheduled for October of 2007.

Correspondence addressed to Volentine from Raeford on November 13, 2007, indicated that some progress had been made in the correction of deficiencies. Nevertheless, on November 16, 2007, Raeford again withheld [Rflock delivery due to Vo-lentine’s lack of complete compliance with requested repairs. Volentine expended $116,000 in repairs. Ultimately, flock delivery occurred on November 30, 2007, and an additional flock was delivered on January 4, 2008.

Thereafter, inspections of the Volentine farm through August of 2008 indicated continuous problems with lighting and fans, feeding times, fill tubs, egg collection, feed distribution and collection, dead bird collection, cool cell, water pressure, temperature and sanitation issues as well as new employee problems. On August 1, 2008, a meeting between Volentine, his banker, Wade Holloway, and Garris, Ovitt and LeNarz occurred. Raeford expressed continued concern with Volentine’s management practices and egg production rates. The meeting documentation indicates that Raeford announced its decision to no longer supply birds to Volentine. Raeford offered two options — lease or sale of the farm. Raeford declined to deal with Volentine’s son due to his poor management skills.

After the August meeting, the flocks were removed from Volentine’s farm in the [745]*745normal course of business on September 3 and October 13, 2008. On October 2, 2008, Garris sent a letter to Volentine formally terminating the Contract between Volen-tine and Raeford, effective November 1, 2008, because Volentine had “breached” contractual duties and “defaulted under the terms and conditions of the contracts.” Raeford informed Volentine that his failure to remedy “numerous deficiencies” and “substandard conditions” after repeated requests to do so would result in no more deliveries of chickens.

RRaeford’s letter emphasized the deficiencies of Volentine’s management beginning in 2007. The termination letter indicated that “since that time,” Volentine had continued to breach the contract as follows:

You have continued to breach your contractual obligations by operating your farm in a substandard manner. Raeford Farms has repeatedly informed you of problems with birds being fed, eggs being gathered, fighting in the house, water fine issues, cooling cell issues and fans. You have continuously failed to remedy these problems despite being warned that your contracts would be terminated if these deficiencies were not corrected. Also in the contracts you agreed to properly dispose of dead birds, manure and poultry fitter in accordance with government regulations and Raeford Farms’ recommendations. You have been informed on several occasions that Raeford Farms observed violations with regard to your disposal of dead birds. You have chosen to ignore these warnings and have consistently failed to dispose of dead birds in an acceptable manner. In the contracts, you also agreed to use your best efforts to maintain the breeder hen flock in such a manner that maximum egg production and hatchability would result. You have not fulfilled this obligation as your egg production has consistently been below our acceptable farm average.
Raeford Farms has been very patient with you and has given you numerous opportunities to remedy the substandard conditions of your farm; however, you have continuously failed to address our concerns and correct the deficiencies in your farming operation. As a result of your actions which have endangered or impaired Raeford Farms’ property and your failure to comply with the provisions of your contracts, Raeford Farms has been left with no other option but to terminate your contracts. This decision to terminate your contracts is a final decision, and you have no appeal rights with respect to this decision.

Raeford offered to allow Volentine to sell or lease the farm to an approved contractor and again informed Volentine that his son’s purchase or lease of the farm was not a viable option.

On September 23, 2009, Volentine instituted suit against Raeford Farms of Louisiana, LLC, Columbia Farms of Georgia, Inc., House of Raeford Farms of Louisiana, LLC, House of Raeford Farms, Inc., Samuel | sLeNarz and Kelly Garris (collectively, “Raeford”), alleging claims of breach of contract, tortious interference with contractual rights, intentional interference with business relations and violations of the Louisiana Unfair Trade Practices Act (LUTPA) in violation of La. R.S. 51:1401, et seq.

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Bluebook (online)
121 So. 3d 742, 2013 WL 3816430, 2013 La. App. LEXIS 1497, Counsel Stack Legal Research, https://law.counselstack.com/opinion/volentine-v-raeford-farms-of-louisiana-llc-lactapp-2013.