LDM Obtains Victory of Over $100,000 for Agriculture Client in National Grain and Feed Arbitration Case

LDM secured a favorable ruling for a grain client who purchased 70,000 bushels of corn but faced understandable issues with loading from the seller due to high diesel prices, inflation, and a truck driver shortage. The client maintained contact with the seller and seller’s agent, and did not cancel the contract. Ultimately, the seller breached the contract by opportunistically using the loading issues to sell the corn at a higher market value in early 2022. The seller's breach of contract led to damages of $103,396.39 for LDM's client.

In late 2021, LDM’s client entered into a contract to purchase 70,000 bushels of corn but encountered difficulties scheduling trucking for loading and shipping the entire quantity due to market forces. In early 2022, disruptions in the corn industry—including high diesel prices, inflation, and a nationwide truck driver shortage—complicated the client’s efforts to secure trucking services. Concurrently, the price of corn increased by approximately $2.00 per bushel by the end of March 2022. A seller attempted to take advantage of the higher market price and sold the same corn contracted to LDM’s client.

Once it became clear that LDM’s grain client would never receive his purchased goods, the client liquidated the contracts in accordance with the National Grain and Feed Association (NGFA) rules and industry practice. LDM’s client invoiced the seller in the amount of $103,396.39 and arbitrated the dispute with experienced counsel.

Three key factors contributed to the successful award of damages:

1. First, clearly presenting impactful persuasive evidence that  contradicted the seller’s assertions.
    
2. Second, a legal examination of the contract terms relative to NGFA Rules and Nebraska law showed that LDM’s client was permitted to extend the loading schedules due to circumstances beyond their control. Furthermore, the client was actively seeking to fulfill the contract and thus did not breach it.
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3. Third, this analysis, which included applying the facts of the dispute to the controlling law, highlighted the seller’s breach of the contracts, including improperly renegotiating terms and failing to comply with Rule 28 of NGFA Rules.

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LDM’s client was awarded $103,396.39  in damages.

This case is a great example of how experienced counsel adds substantial value to a claim. In business disputes, parties routinely enter into contracts they are seeking to either enforce or make unenforceable due to any number of concerns. A successful resolution of any contract dispute includes applying the terms of the contract and the facts at issue to the relevant law.  Experienced legal representation is crucial to a business’s ability to optimize the chances of success during these disputes.

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Experienced legal representation is essential for businesses to navigate contract disputes effectively by applying the contract terms and facts to the relevant law, thereby optimizing the chances of a successful resolution.

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