Primex Farms v. Chaparrel Farms
Defendant, Chaparral Farms, Inc. (Chaparral), challenges a $3.4 million judgment in a breach of contract action brought by plaintiff, Primex Farms, LLC (Primex). The jury found that Chaparral’s agent, Bill Klepper, the owner of cross-defendant, Klepper Ag Services, Inc. (Klepper Ag), had both actual and ostensible authority to sign a contract on behalf of Chaparral agreeing to deliver Chaparral’s 2006, 2007, and 2008 pistachio crops to Primex for processing. Chaparral only delivered its 2006 crop to Primex and delivered its 2007 and 2008 crops to another processor.
Chaparral contends that the judgment is not supported by substantial evidence. According to Chaparral, Klepper did not have authority to sign the contract with Primex. Moreover, Chaparral argues, Klepper breached his fiduciary duty to Chaparral when he failed to inform Chaparral that he had signed the purported contract. Chaparral further argues that the trial court erred when it refused to instruct the jury that Primex had a duty to ascertain the scope of Klepper’s authority and when it admitted extrajudicial statements made by Klepper. In its cross-appeal, Primex asserts that the trial court incorrectly denied its request for prejudgment interest.
Contrary to Chaparral’s position, substantial evidence supports the judgment and the trial court did not err as claimed. Further, Primex is not entitled to prejudgment interest. Accordingly, the judgment will be affirmed.
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