Wisconsin Central Farms, Inc. v. Heartland Agricultural Marketing, Inc.

2006 WI App 199, 724 N.W.2d 364, 296 Wis. 2d 779, 2006 Wisc. App. LEXIS 897
CourtCourt of Appeals of Wisconsin
DecidedSeptember 28, 2006
Docket2004AP2971
StatusPublished
Cited by6 cases

This text of 2006 WI App 199 (Wisconsin Central Farms, Inc. v. Heartland Agricultural Marketing, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of Wisconsin primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wisconsin Central Farms, Inc. v. Heartland Agricultural Marketing, Inc., 2006 WI App 199, 724 N.W.2d 364, 296 Wis. 2d 779, 2006 Wisc. App. LEXIS 897 (Wis. Ct. App. 2006).

Opinion

LUNDSTEN, P.J.

¶ 1. This case arises from a contract dispute between Wisconsin Central Farms and Heartland Agricultural Marketing. Under the contract, Heartland agreed to receive potatoes from Central Farms, sell them to potato chip plants, and pay Central Farms the contract price as the potatoes were delivered to third parties. In a special verdict following trial, the jury found that Heartland breached the contract, and awarded damages to Central Farms. The jury also made findings under Wis. Stat. ch. 100 (1999-2000), 1 a chapter that regulates some aspects of agricultural marketing and trade practices. The circuit court denied post-verdict requests by Central Farms for double damages and attorney's fees under ch. 100.

¶ 2. Central Farms appeals the denial of double damages and attorney fees. It also appeals an order staying execution of the judgment and tolling 12% statutory interest on the judgment damages while this appeal is pending. Heartland cross-appeals, arguing, among other things, that we should grant a new trial based on alleged trial errors and in the interest of justice.

¶ 3. We agree with Central Farms that it is entitled to double damages. In all other respects, we affirm the circuit court's judgment. We also affirm the circuit court's order staying execution of the judgment.

*786 Background

¶ 4. Under the parties' contract, Central Farms agreed to deliver 72,000 hundredweight of potatoes to Heartland by October 10, 2000. 2 The contract was for Snowden "chipping" potatoes, that is, potatoes used to make potato chip products. Heartland agreed to store the potatoes and market them to third parties. The contract provided that Heartland would pay Central Farms $6.65 per hundredweight, reduced by charges for storing, managing, testing, loading out, and grading the potatoes. The contract also specified that the amount Heartland owed Central Farms would be determined on the basis of "marketable" potato quantities on the date the potatoes were accepted by the third parties.

¶ 5. After Central Farms delivered the potatoes, Heartland made a payment to Central Farms for a portion of the potatoes Heartland had delivered to a third party. Later, Heartland began sending truckloads of potatoes, including Central Farms' potatoes, to a third-party plant in Texas, but the plant rejected the potatoes. Heartland's attempts to market Central Farms' potatoes elsewhere were not successful. In February 2001, Heartland informed Central Farms that Heartland was rejecting Central Farms' potatoes. 3

*787 ¶ 6. Central Farms sued Heartland, alleging breach of contract and a violation of Wis. Stat. § 100.01. 4 The case proceeded to a jury trial. The special verdict included the following findings by the jury:

QUESTION 1: Did [Heartland] breach the contract with [Central Farms] for the 2000 potato harvest?
Yes
QUESTION 2: If you have answered question 1 'YES", then answer these questions:
(a) Was [Heartland]'s breach a breach of its duty of good faith and fair dealing in performing its contract with [Central Farms]?
No
(b) Did [Heartland] reject or fail to properly deliver the potatoes it contracted to buy from [Central Farms] without reasonable cause?
Yes
QUESTION 3: Did [Central Farms] breach the contract with [Heartland] for the 2000 potato harvest?
No
*788 QUESTION 4: What sum of money will fairly and reasonably] compensate [Central Farms] for the breach of contract?
ANSWER: $202,101.13

Thus, the jury found that Heartland breached the contract and awarded Central Farms $202,101.13 in damages. Pertinent to the statutory questions here, the jury rejected Central Farms' assertion that Heartland breached its duty of good faith, but found that Heartland did "reject or fail to properly deliver" under the contract "without reasonable cause."

¶ 7. The parties filed post-verdict motions. Central Farms sought statutory double damages based on the jury's finding that Heartland violated Wis. Stat. § 100.01(2)(a) by rejecting the potatoes without reasonable cause. Double damages for a violation of § 100.01(2)(a) are available under § 100.01(4). 5 Central Farms also sought attorney's fees under Wis. Stat. § 100.03. 6 Heartland requested that the court change the jury’s answer to verdict question 2(b), its finding that Heartland rejected or failed to deliver without *789 reasonable cause. Heartland also requested a new trial based on alleged trial errors.

¶ 8. The circuit court determined that Central Farms was not entitled to double damages under Wis. Stat. § 100.01 and not entitled to costs and attorney's fees under Wis. Stat. § 100.03. The court also denied Heartland's requests to change the answer to special verdict question 2(b) and for a new trial. The court entered judgment on the jury's verdict for $202,101.13, plus costs. Upon motion by Heartland, the circuit court also ordered a stay of execution of the judgment pending appeal, provided that Heartland pay the full judgment to the clerk of court. We will reference additional facts as needed in our discussion below.

Discussion

A. Double Damages Under Wis. Stat. § 100.01(4)

¶ 9. A "dealer" who violates Wis. Stat. § 100.01(2)(a) is liable for double damages under § 100.01(4). Therefore, Central Farms' assertion that it is entitled to double damages hinges on resolving the parties' arguments regarding § 100.01(2)(a).

¶ 10. Wisconsin Stat.

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Bluebook (online)
2006 WI App 199, 724 N.W.2d 364, 296 Wis. 2d 779, 2006 Wisc. App. LEXIS 897, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wisconsin-central-farms-inc-v-heartland-agricultural-marketing-inc-wisctapp-2006.