Breach of contract claims filed by food supplier

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Breach of contract claims filed by food supplier

On Behalf of | Jun 27, 2015 | Closely Held Businesses

In recent times, various news stations have reported an avian influenza virus that has apparently swept through poultry farms in the United States. Millions of egg-laying chickens have died, and photographs have been published showing truck loads of hen carcasses being removed from farms for burial. The situation has caused legal issues for some. Illinois readers might be interested in a recent case where one food supplier has filed breach of contract claims against an egg farmer, asserting that the farm should be held liable for the loss of revenue the hen/egg shortage has caused to the supplier.

Because the flu virus has resulted in an abrupt shortage of egg-laying hens for the egg farm, the food supply company claims the farm has breached the contract as the food company is unable to fulfill its order commitments. The supplier has publicly stated that the harm done by the farm’s reported contract breach will be irreparable to the company. The food supplier has requested that the court order the egg farm to cover the cost of the financial loss its company will suffer due to the shortage of eggs.

The Iowa egg farm in question is said to have lost 5.5 million egg-laying hens to the recent avian virus.  The state of Iowa is considered the leading state for egg production in the nation. That production reportedly plummeted 21 percent when the flu virus moved through the flocks.

In May 2015, the leading egg farm only produced 1 billion eggs, which is the lowest amount in a single month since February. It remains to be seen whether the courts will rule in favor of the breach of contract claims filed by the food supplier in this case. Similar legal actions could possibly be filed between other suppliers and farms in Illinois or elsewhere as they attempt to recover the losses suffered due to the recent flock illnesses. Anyone considering filing a breach of contract claim with regard to business dealings will likely benefit by consulting with a legal professional before proceeding.

Source:, “Post subsidiary sues egg farm alleging breach of contract : Business“, David Pitt, June 23, 2015

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