SIW CLIENT WINS PARTIAL SUMMARY JUDGMENT IN CASE PREMISED ON DEFINITION OF "FIXED COSTS"

Dan Wake obtained partial summary judgment for his client, Badger Farms, Inc., in an unusual and interesting dispute over the determination of an agricultural cooperative's "fixed costs".  The case arose from a liquidated damages provision that was based on the cooperative's fixed costs, and which Badger Farms alleged the cooperative had exaggerated in order to impose improper fines on Badger Farms.  The cooperative argued, however, that the operative agreement had been amended so as to eliminate the need for a determination of its fixed costs.  Shortly before trial, which would have consisted largely of a battle of expert agricultural economists, the Denver District Court resolved cross-motions for partial summary judgment in favor of Badger Farms and held that the operative agreement indeed required a calculation of the cooperative's fixed costs.  The parties then settled the case.