Iowa hog farmers set back by swine flu fear

Posted on Tuesday, August 11th, 2009 at 7:12 am    

As fears of H1N1 spread throughout the country, some hog farmers in Iowa are suffering the consequences. Some farmers with hog production contracts have been notified by integrators that they cannot fulfill their part in the contracts.

Using "force majeure" provisions, integrators are backing out of contracts. Force majeure is a contractual clause that allows one party to get out of his obligation under certain extraordinary cricumstances like war or crime. 

Some regulators have claimed that these integrators cannot terminate the contracts with a force majeure provision because the clause does not apply to the swine flu case. The Iowa Supreme Court previously ruled that force majeure provisions cannot be used in cases that involve the normal risks associated with business.

If you or anyone you know is considering filing a business claim, contact the Iowa business litigation lawyers of LaMarca Law Group, P.C. at (877) 327-2600.

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