Idaho Meat Processor Faces Lawsuit Over Unpaid $2 Million in Livestock
Intermountain Packing, a meat processing company based in Idaho Falls, is facing serious allegations after reportedly failing to pay for over $2 million in livestock from multiple dairies.
Filed by Dry Creek Dairies LLC, Idaho Magic Milk LLC, and Washington Agri-Investments LLC, the lawsuit accuses the company of violating the Packers and Stockyards Act, breaching contracts, and unjust enrichment.
Livestock Delivered, Payment Withheld
According to the complaint, the dairies agreed to supply livestock to Intermountain Packing between September and November 2023, with the price set between $1.03 and $1.10 per pound.
During this period, they reportedly delivered livestock worth at least $2,148,749. However, Intermountain Packing allegedly did not uphold its end of the agreement by failing to pay for the cattle.
The lawsuit claims Intermountain engaged in “unfair, deceptive, and anti-competitive practices” by withholding records required under federal law.
The Packers and Stockyards Act, established to ensure fair trading practices and competition in the livestock and meat industries, was allegedly violated in this case. The act aims to protect farmers, ranchers, and consumers by preventing unjust practices.
According to the complaint, Intermountain Packing’s refusal to provide transaction records has left the plaintiffs unable to verify payment details.
Promises and Post-Dated Checks
When approached about the outstanding payment, David Adams, listed as CEO of Intermountain Packing, issued three post-dated checks along with a verbal promise of payment.
However, when one of the dairies attempted to cash the checks, they were reportedly returned as “dishonored,” following a stop payment request from Intermountain Packing.
Adams allegedly continued to assure the companies that payment was forthcoming, despite indications that he “knew or should have known his representations were false.”
The complaint details additional losses, including a failure by Intermountain Packing to purchase an additional 528,597 pounds of livestock, leading to a further loss of $174,437.01 for the plaintiffs.
Seeking Legal Recourse
The affected dairies have requested a jury trial and seek compensatory damages, including pre- and post-judgment interest. They are also demanding that Intermountain Packing cease any further violations of the Packers and Stockyards Act and cover legal costs and attorney fees.
As of now, Intermountain Packing and David Adams have not responded to the allegations. The lawsuit underscores the importance of fair practices within the meatpacking industry and raises questions about the future of Intermountain Packing’s operations in Idaho.
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