Opinion ID: 2046005
Heading Depth: 1
Heading Rank: 16

Heading: findings of trial courts

Text: In the cases involving Sack Brothers (case No. S-99-355), T-4 Farms (case No. S-99-463), Hendrickson (case No. S-99-464), and Puttergill Land & Cattle, Inc. (case No. S-99-465), the Howard County District Court found that the contracts were forward contracts excluded from the Commodity Exchange Act and Nebraska's Commodity Code. The court concluded that the contracts were between a seller engaged in the business of producing grain and a buyer engaged in the business of buying grain and that the contracts were not investment contracts sold in violation of Nebraska's Blue Sky laws, the Securities Act of Nebraska, the Securities Act of 1933, or the Securities Exchange Act of 1934. The court also found that the contracts were written in clear and unambiguous language and that the producers had failed to deliver the grain to Great Plains as required and had anticipatorily breached the contracts. The court granted summary judgment in favor of Great Plains, and on January 15, 1999, the court heard the motions for summary judgment on the issue of damages. The court concluded that Great Plains had elected to recover only its out-of-pocket losses and that such losses were as follows: Sack Brothers, $812,723; T-4 Farms, $368,370; Hendrickson, $99,005; and Puttergill Land & Cattle, Inc., $137,153. The court entered judgment for those amounts with interest at the rate of 5.584 percent from March 10, 1999. The Nance County District Court granted summary judgment in favor of Great Plains and against Santin (case No. S-99-658), finding that the contracts were cash-forward contracts exempt from and not in violation of the Commodity Exchange Act or Nebraska's Commodity Code. The court concluded that the contracts were not securities and did not violate the Securities Act of Nebraska, the Securities Act of 1933, or the Securities Exchange Act of 1934 and were legally binding, valid, and enforceable. Further, the court found that Santin had failed to deliver the grain to Great Plains as required under the contracts and had committed an anticipatory breach of each contract. The court also granted summary judgment in favor of Great Plains on the issue of damages. The court noted that Great Plains was seeking its out-of-pocket losses and awarded Great Plains $140,017.50 with interest at the rate of 5.732 percent from April 15, 1999. In the Polk County District Court, PG Farms, Inc. (case No. S-99-703); Gangwish Seed Farms, Inc. (case No. S-99-705); and Bumgarner Land and Cattle Co. (case No. S-99-706) made similar allegations concerning the validity of the contracts. Great Plains made similar counterclaims as to breach of the contracts. The court determined as a matter of law that the contracts were cash-forward contracts, that Nebraska's Commodity Code did not apply, that the contracts did not violate state or federal securities laws, and that the contracts were not illusory. The court concluded that the contracts were binding regardless of the absence of the producers' signatures. On April 15, 1999, the court entered summary judgments in favor of Great Plains and awarded damages in favor of Great Plains for its out-of-pocket losses against PG Farms, Inc., in the amount of $32,810; against Gangwish Seed Farms, Inc., in the amount of $114,600; and against Bumgarner Land and Cattle Co. in the amount of $324,207.50. Interest on each of these judgments accrued at the rate of 5.732 percent.