Oregon Potato Co. v. Kerry, Inc.
United States District Court for the Western District of Wisconsin
575 F. Supp. 3d 1064 (2021)
- Written by Darius Dehghan, JD
Facts
Oregon Potato Company (OPC) (plaintiff) was a manufacturer of smoothie mixes that contained yogurt cubes. OPC purchased the yogurt cubes from Kerry, Inc. (defendant). After Kerry delayed in fulfilling OPC’s orders for yogurt cubes in 2019, OPC decided to cancel its orders and bring suit against Kerry. Raising an impracticability defense, Kerry stated that its production in 2019 was limited by a mechanical breakdown, a listeria contamination, and employee turnover. However, Kerry acknowledged that it still had some production capacity that it used for filling other customers’ orders. This allocation was based on Kerry’s customer-segmentation plan, but there was no information provided as to whether the plan was fair and reasonable. Moreover, there was evidence indicating that Kerry had notice of the workplace issues limiting production weeks, months, or even years before they occurred. OPC moved for summary judgment, which the district court took under advisement.
Rule of Law
Issue
Holding and Reasoning (Peterson, J.)
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