S & A Farms, Inc. v. Farms.com, Inc., et al., No. 11-2564 (8th Cir. 2012)Annotate this Case
S&A sued Farms.com alleging that Farms.com violated the Commodity Exchange Act (CEA), 7 U.S.C. 1 et seq., breached its fiduciary duty, committed negligence, and made misrepresentations. The district court granted Farms.com's motion for summary judgment and S&A appealed. The court found that S&A did not sufficiently plead a fraudulent-inducement claim under 7 U.S.C. 6, but only alleged that Farms.com engaged in a fraudulent scheme under 7 U.S.C. 6o(1)(B). The court concluded that the district court did not err by granting Farms.com's motion for summary judgment on S&A's fraud claim where S&A's complaint alleged only a fraudulent scheme, not that Farms.com's failure to register caused it damages. The court also concluded that the district court did not err in granting Farms.com's motion for summary judgment on S&A's breach of fiduciary duty claim where S&A presented no evidence describing a commodity-trading advisor's standard of care or how Farms.com breached that standard of care.