Summary of a Recent
Judicial
Development in
Biotechnology
Agricultural Nonprofit Cooperative Sues Seed
Company for Breach of Contract
Regina Leal de OliveiraNational AgLaw Center Graduate Assistant
In AgraMarke, Inc. vs. Aventis Cropscience, No 03 C 4385, MDL No 1403, 2005 U.S. Dist. LEXIS 5556, at *1-18 (D. Mass. Feb. 8, 2005), AgraMarke, an agricultural nonprofit cooperative, sued Aventis Cropscience and Starlink Logistics, Inc., claiming breach of contract and equitable estoppel. AgraMarke alleged that it suffered losses as a consequence of Aventis selling contaminated corn. Aventis had entered into a binding agreement with the attorneys general of affected states to mitigate the economic losses suffered by growers and grain elevators located in these states. The court had previously granted summary judgment against AgraMarke on grounds that the cooperative was neither a grower nor a grain elevator. AgraMarke instead set up corn transactions on behalf of the growers. AgraMarke then amended its complaint at the suggestion of the court and alleged a third party beneficiary claim to enforce the agreement. The court determined, however, that AgraMarke was not entitled to recover as a third party beneficiary because the intent to benefit a third party was not expressed in the agreement. Hence, the court found that AgraMarke lacked standing to enforce the Agreement and granted a second time summary judgment in favor of Aventis and against AgraMarke.
The case was decided on February 8, 2005; this summary was posted Dec. 2, 2005.