Opinion ID: 1598750
Heading Depth: 1
Heading Rank: 2

Heading: Recovery of Lost Profits.

Text: Amana initially claims the Ballards cannot recover lost profits as a matter of law. Citing Miller v. Economy Hog & Cattle Powder Co., 228 Iowa 626, 639, 293 N.W. 4, 10-11 (1940), and Stockdale v. Agrico Chemical Co., 340 F.Supp. 244, 256 (N.D. Iowa 1972), it claims the Ballards can only recover the market value of the hogs. This issue has been decided adversely to Amana in Mills v. Guthrie County Rural Electric, 454 N.W.2d 846 (Iowa 1990). In Mills, we were faced with a plaintiff seeking damages associated with the business interruption of a farrow-to-finish hog operation which had been destroyed by fire. 454 N.W.2d at 851. In determining certain consequential damages could be recovered, we stated: While recovery of the market value of the hogs that were destroyed precludes plaintiffs from also recovering profits based on their inability to sell those hogs, this circumstance should not preclude additional damages based on interruption in the production of additional litters during the period of time reasonably required to replace the destroyed farrowing facility. Id. In this case, the Ballards also seek to recover damages based on an interruption in their farrow-to-finish operation's ability to produce litters. Based upon Mills, we believe the Ballards may recover lost profits associated with the reestablishment of their hog operation.