Opinion ID: 2144201
Heading Depth: 1
Heading Rank: 4

Heading: deceptive or unfair trade practice

Text: The trial court found as a question of fact and held as a matter of law that appellant's statements and actions have violated both Minn.Stat. §§ 325D.43-.48 (1980) (Uniform Trade Practices Act) and 7 U.S.C. §§ 2301-2306 (1976) (Unfair Trade Practices Affecting Producers of Agricultural Products). The court did not, however, specify which provisions of the statutes were violated. The only sections which appear relevant proscribe the making of a false or misleading statement or report that: disparages the goods, services, or business of another by false or misleading representation of fact, Minn.Stat. § 325.44 subd. 1(8) (1980); or concerns the finances, management, or activities of associations   , 7 U.S.C. § 2303(e) (1976). An action under Minn.Stat. § 325D.44 subd. 1(8) (1980) or 7 U.S.C. § 2303(e) (1976) to recover for a false or misleading statement or report differs significantly from an action for defamation where there is a presumption that the disparaging statement is false. See Comment, The Law of Commercial Disparagement: Business Defamation's Impotent Ally, 63 Yale L.J. 65 (1953). This provision of the Minnesota Uniform Trade Deceptive Practices Act and presumably the similar provision of the Unfair Trade Practices Act had their genesis in the common-law tort of disparagement. Note, Disparagement under the Uniform Deceptive Trade Practices Act, 51 Iowa L.Rev. 1066 (1966). That tort carried no such presumption of falsity; [l]iability result[ed] only when the plaintiff prove[d] that the defendant's statement [was] false. Comment, supra at 75. The statutory schemes before us make no attempt to alter this burden of proof to require that the defendant prove the truth of the statements. The burden remains, therefore, with the plaintiff to prove that the statement is false. United has not met that burden in this case. United introduced four letters and evidence of Nelson's oral reiterations thereof as proof that Nelson had made false or misleading reports or statements. One of those letters stated in pertinent part as follows: I tried to reach you on the phone earlier as I wanted to personally advise you in advance of the big changes that are materializing in the wild rice industry. THE PRICE OUTLOOK ON WILD RICE HAS FALLEN SHARPLY. WE COULD SAVE YOU $250,000.00. The upshot of all the fighting and feuding in United is that it created an impossible situation for everyone, and I will now be the chief executive officer for the exclusive sales operation of the Ramy Seed Co., Mankato, MN., as NORTHLAND WILD RICE, INC. We will have our offices and plants in Grand Rapids and Deer River. We will have the quick cook wild rice, such as that which you use. Years ago, we developed the process that United uses, and even then we were aware of needed advances to correct some of the problems, such as the `hard kernel count', and excess product loss. We wil (sic) be located on city water and sewer for better quality safety as well as city gas for substantial savings. This, plus the ability to utilize the new lower prices, makes it possible for us to project a price now to a customer such as you of $5.29 per pound, available in 60-90 days of order. I have acceptance of other large companies for supplying their needs. We want to do business with you and it is good business for you to do so. We will look forward to hear (sic) from you. Yours truly, NORTHLAND WILD RICE, INC. Clifton Nelson Executive Managing Officer [5] It does not take a careful reading of this letter to see that it is less than complimentary to United. However, United did not prove that the statements contained in this or the other letters were false or misleading. That burden rests squarely upon United. The order of the district court is, therefore, reversed.