Archer-Daniels-Midland Fights Feed Allegations with Counterclaim

Archer-Daniels-Midland Company (ADM) filed an answer and counterclaim on Tuesday to allegations that the company canceled contracts to provide animal feed. ADM alleged that it did not breach any contract and that any damages were the fault of the plaintiffs, Pritchett Farms and B&L Stock Farm. 

ADM, represented by Reminger, admitted that it entered the contracts but claims it “denies for want of knowledge” that the contracts attached to the complaint were authentic. The company attached copies of the contract and denied further allegations in its response. The counterclaim alleged that the plaintiffs falsely accused ADM of providing feed that was not commercially acceptable and did not fulfill their side of the contract. 

“Even in the face of this information, Plaintiffs breached their contracts with ADM by falsely stating that ADM had breached its contract with them, repudiating their contracts with ADM, and failing to perform the remainder of their contractual obligations,” the counterclaim stated. ADM asked for attorney’s fees, expectation damages, and damages for inventory lost and costs. 

The complaint was filed on May 26 in Henderson County Circuit Court in Kentucky by Steve Pritchett Farms, LLC and B&L Stock Farm LLC (B&L), represented by Moore & Moorman. They claimed ADM breached a contract to provide animal feed to the plaintiffs for $435.60 per ton, then, one month later, ADM informed Pritchett and B&L that they would not sell the feed to them. 

“As a direct and proximate result of ADM’s breach and repudiation of the contract, Pritchett (and B&L) covered by purchasing the said animal feed from a different supplier, and the cost of that feed was greater,” the complaint stated. 

ADM moved to have the case heard in the Western District of Kentucky on Friday, alleging that the total value of the supply contracts held by Pritchett and B&L are worth over $900,000m making the amount in controversy almost $2 million.