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Bolin Farms v. American Cotton Shippers Association

United States District Court for the Western District of Louisiana
370 F.Supp. 1353 (W.D. La. 1974)


Facts

Between January 9, 1973 and March 29, 1973, Bolin Farms (plaintiff) and 13 other cotton farmers entered into forward sales contracts with American Cotton Shippers Association (American) (defendant). American agreed to purchase for an agreed-upon price all the future cotton produced by Bolin Farms on a set amount of acreage. At the time the contract was made, cotton was selling for between 29 and 41 cents per pound. However, due to a variety of environmental and market factors, when the cotton was ready for harvest in September 1973 the price had risen to 80 cents per pound. Bolin Farms brought suit in United States district court, seeking a declaratory judgment that due to the extreme change in price following the making of its contract with American, the contract was now unenforceable. Thirteen other suits were filed on the same ground against American before Bolin Farms’ suit, and in all 13, the contracts were held enforceable.

Rule of Law

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Issue

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Holding and Reasoning (Hunter, C.J.)

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  • A “yes” or “no” answer to the question framed in the issue section;
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  • The procedural disposition (e.g. reversed and remanded, affirmed, etc.).

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