Cattle Company Ordered to Pay Tyson $1 million02 December 2013
US - An Idaho cattle company faces paying meat processor Tyson nearly $1 million for breach of contract as part of a Chapter 11 bankruptcy filing.
Hollifield Ranches has filed an appeal against the decision.
However, the company will have to start making staged payments of the $958,442 while the appeal is being heard, a report in the Idaho Statesman said.
Double H Cattle Co., part of Hollifield, had to source and fatten cattle for Tyson, then deliver them to Tyson’s plant in Pasco, Washington for slaughter.
The agreement began in June 2010 and was profitable for a time, but cattle prices fell and Hollifield said it lost money, the Idaho Statesman report says.
Tyson Fresh Meats, filed its claim in March 2012 and Hollifield quickly filed a counterclaim seeking $1.2 million from Tyson.
US Bankruptcy Judge Jim Pappas rejected the counterclaim, which contends that Tyson failed to take adequate steps to protect Hollifield from market risks.
The judge said that that Hollifield broke the contract and did not prove Tyson” failed to employ reasonable and customary risk management practices.”
Hollifield filed for Chapter 11 bankruptcy in December 2010.
TheMeatSite News Desk