Opinion ID: 692298
Heading Depth: 3
Heading Rank: 1

Heading: Raymond and Joyce Horn

Text: 10 The Horns acquired their first Harvestore silo in 1977 and leased a second silo in 1981. They originally stored corn silage in the first silo and had no complaints about how the feed kept over time. In 1981, however, after leasing the second silo, the Horns began to store high-moisture corn in the first silo and haylage 12 in the second. Sometime late in 1982 and approximately two months after they began feeding their herd a mixed ration of haylage and corn, the Horns realized that their herd's production levels were declining and that the herd's health appeared to be deteriorating. Raymond Horn knew the problem was feed-related, and he focused specifically on the haylage, which he had never before used in his dairy operations. Raymond Horn asked Bill Kipfer, a nutritionist and former Harvestore salesman, about the lack of production from his herd, and Kipfer took samples of the Horns' feed, recommending that more high-moisture corn and protein be added to the cows' ration. 13 The Horns began adding protein supplements to their feed in early 1983, and the herd's milk production rose gradually in response. The physical appearance of the cows also improved. The Horns knew in 1983, then, that they could not feed an unsupplemented ration to their cows, as their Harvestore dealer had represented. They also knew that because of the cost of these protein supplements, they would not realize the savings on feed that the dealer had projected in their farm plan. Raymond Horn did not at this point link these problems to the Harvestore silos, however, because he had never before used such silos and Kipfer had not indicated that the feed was not keeping well. 11 In the summer of 1983, the Horns concluded that haylage did not provide enough protein or energy for their herd, and they thus replaced the haylage in one of their silos with corn silage. They continued to store high-moisture corn in the other silo, but finally switched to shelled corn in 1989 because the high-moisture corn would not keep in the silo for more than six to eight months. A Harvestore representative convinced the Horns to have their two silos resealed in 1989 as part of a company resealing program. Up until that point, the Horns were unaware of any problem with the seals on their silos. 12 On the basis of these facts, the district court found as a matter of law that the Horns knew or should have known as early as 1983 that the representations made to them about milk production and feed costs were untrue and that they were incurring damages as a result. Even accepting the Horns' representations that they did not link their problems to the Harvestore silos prior to 1991, the court concluded that by 1983, the Horns at least should have investigated the silos as a possible source of their problems. We agree that the evidence addressed to the Horns supports but one reasonable conclusion as to when their cause of action accrued. 13 It is undisputed that shortly after the Horns began to use their second silo to feed a mixed-ration of haylage and corn, their herd's milk production dropped. Production only rose to previous levels when, at the advice of a nutritionist, the Horns began adding protein supplements to their feed early in 1983. At that point, the Horns did not go back to their Harvestore dealer and ask why adequate production levels could not be maintained without protein supplements, as had been represented to them. Although they continued to tinker with their feed rations over the years, the Horns apparently accepted that they would need to add supplements, although they realized that this would eliminate the savings on feed that their Harvestore dealer had projected. Indeed, by the summer of 1983, the Horns decided that haylage itself provided insufficient energy and protein to their herd, and they stopped feeding it, despite the fact that they had leased their second silo for the expressed purpose of feeding a mixed ration of haylage and corn that would need little or no supplementation. In our view, an ordinarily diligent farmer would have investigated further before abandoning haylage altogether. Such a farmer would at least have asked his Harvestore dealer about the lack of production from his herd and about the need to add supplements. The record indicates, however, that the Horns stopped feeding haylage without ever confronting their dealer with their problems. Indeed, the record reveals that the Horns made little if any attempt to investigate the cause of their herd's problems, and they never included the silos themselves as a possible subject of investigation. See Miles v. A.O. Smith Harvestore Prods., Inc., 992 F.2d 813, 816-17 (8th Cir.1993) (summary judgment proper where plaintiff knew that the silo had not produced the represented results but made no attempt to discover the cause of the problem). We thus agree that the Horns' cause of action accrued sometime in 1983 and that it is barred unless the limitations period was for some reason tolled. 14 In that regard, the Horns rely on Indiana's doctrine of fraudulent concealment. Ind.Code Sec. 34-1-2-9, the statutory codification of that doctrine, provides: 15 If any person liable to an action shall conceal the fact from the knowledge of the person entitled thereto, the action may be commenced at any time within the period of limitation after the discovery of the cause of action. 16 This doctrine is available in Indiana to estop a defendant from asserting the statute of limitations 'when he has, either by deception or by a violation of duty, concealed from the plaintiff material facts[,] thereby preventing the plaintiff from discovering a potential cause of action.'  Fager, 610 N.E.2d at 251 (quoting Burks, 534 N.E.2d at 1104). To invoke the doctrine where no fiduciary relationship exists between the parties, however, a plaintiff must show that the wrongdoer was not simply silent but committed affirmative acts designed to conceal the cause of action. See, e.g., Malachowski v. Bank One, Indianapolis, 590 N.E.2d 559, 563 (Ind.1992); French v. Hickman Moving & Storage, 400 N.E.2d 1384, 1389 (Ind.Ct.App.1980); Morgan v. Koch, 419 F.2d 993, 998-99 (7th Cir.1969). A plaintiff also must demonstrate that he exercised reasonable care and due diligence to discover the fraud. Malachowski, 590 N.E.2d at 563; Miller v. A.H. Robins Co., 766 F.2d 1102, 1106 (7th Cir.1985); Morgan, 419 F.2d at 999. Thus, when a plaintiff learns of information that would lead to the discovery of the cause of action through diligence, the statute of limitations begins to run, regardless of concealment. Miller, 766 F.2d at 1106-07. 17 Perhaps this tolling provision might apply if the Horns had complained to their dealer or to AOSHPI itself about the problems they encountered and been told that some other factor (e.g., their haylage chopping practices or the weather) was responsible. But the Horns did not complain, so that any concerns they may have had with the silos themselves were never deflected by the dealer. Indeed, the Horns point to nothing in the record that may properly be characterized as an affirmative act of concealment. In any event, their lack of diligence in investigating the problems with their herd, which we discussed above in determining when their cause of action accrued, also dooms their reliance on the fraudulent concealment doctrine. Cf. Autocephalous Greek-Orthodox Church, 917 F.2d at 288. Because the limitations period was not tolled, the Horns' fraud claim is time-barred.