Area Growers Awarded Damages From Companies
A jury found in favor of a group of eastern Montana farmers during a trial held in Wolf Point last week. Six hemp-related businesses or officers were found guilty of several charges by the jury. District judge Katherine Bidegaray presided over the week-long trial.
USA Biofuels, Vitality Natural Health, Corey Shirley, Owen Kenney, Kent Hoggan and Surety Land Development LLC were all found to be negligent and to have committed negligent misrepresentation.
The jury decided that the actions caused damages to the plaintiffs and that the defendants acted in concert in committing negligence or negligent misrepresentation.
The jury also ruled that the six parties committed fraud, constructive fraud and deceit.
David Rendimonti is the former CEO of Eureka 93. Court documents read, “The court has determined as a matter of law that Eureka 93, Inc., committed negligence, negligent misrepresentation, fraud, constructive fraud, promissory estoppel and deceit, and that such torts were the causes of plaintiffs’ damages.”
Amount of punitive damages from each company or individual to the defendants included: USA Biofuels, $10 million; Vitality Natural Health, $10 million; Eureka 93, $10 million; Corey Shirley, $5 million; Owen Kenney, $5 million; Kent Hoggan, $5 million; Surety Land Development, $10 million; and David Rendimonti, $1 million.
The amount of money decided to be awarded to the plaintiffs for the lost profit or prospective gain compensatory damages caused by all defendants was determined to be $7.5 million. Individual plaintiffs were awarded for mental suffering, mental anguish, grief, worry and disappointment. That total amount results in more than $2 million.
Jess Romo, a farmer in the Bainville area, said, “We’re pleased with the outcome. It brings a little relief and it’s a moral victory.”
Plantiffs included farmers from Roosevelt, Richland, Sheridan and Daniels counties.
The complaint included that growers and USA Biofuels entered into a written contract during 2018 to seed, grow and harvest dryland hemp using certified hemp seed purchased by USA Biofuels and/or Vitality. USA Biofuels agreed to pay growers a minimum acre guaranty payment.
After completing seeding the contracted hemp crop, growers stated that the minimum acre guaranty payment was not made.
The complaint noted that Eureka 93 is liable to plaintiffs for torts committed by its subsidiaries. USA Biofuels was a shell company used by Vitality Natural Health to gather hemp contracts in Montana for the exclusive benefit of Vitality. Eureka 93 is the assumed business name of Vitality, but is identified as a separate corporation in public statements. Eureka 93 is the surviving entity of the merger between LiveWell Canada, Mercal Capital Corp. and Vitality.
