Yosemite Meat and Locker Service v. Dolarian Business Group
This appeal arises out of a commercial contract dispute. In May 2000, Mid Prairie Products, Inc., and Mid Prairie Genetics, Inc.,[1]entered into a contract (Yosemite contract) with respondent Yosemite Meat & Locker Service, Inc. (Yosemite). Under the terms of the contract, Mid Prairie agreed to supply Yosemite with up to 450 high-quality roaster pigs per week for a period of five years. Yosemite entered into the agreement after determining that Mid Prairie had a superior genetic breeding stock and was capable of producing 100,000 baby pigs a year. Yosemite was looking for approximately 25,000 roaster pigs a year. Roaster pigs are sold whole, weigh between 70 to 100 pounds, and must be healthy with no signs of sickness or abnormalities. It was Yosemites intention that Mid Prairie would provide a steady source of healthy, good-quality roaster pigs to supply Yosemites market for whole pigs. Yosemite believed the pigs supplied under the Yosemite contract would be grown by Mid Prairie. In exchange, Yosemite paid Mid Prairie an interest-free access fee of $234,000 at the start of the contract for the purpose of further developing Mid Prairies herd and assuring a sufficient supply of roaster pigs. The access fee was to be repaid to Yosemite at a rate of $2 per pig delivered to Yosemite over the course of the five-year contract term. The parties agreed that the $2 repayment fee would be waived for the first 17,000 pigs. The judgment is affirmed.
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