Agrisource, Inc v. Johnson
Annotate this CaseThis case arose from Agrisource’s breach of contract claim against Robert Johnson (Johnson). Johnson argued that he was not liable on the contract because he was an agent for a disclosed principal named “Johnson Grain Inc.” which was owned by Neil Brown. Agrisource leased a grain elevator in Ririe from Johnson’s father, Wydell. For several years prior to 2006, Johnson was Agrisource’s employee and managed the elevator. Agrisource terminated its elevator lease in summer 2006, and Johnson was then unemployed. Brown purchased the grain elevator in August 2006 from Wydell. Brown was Johnson Grain Inc.’s majority shareholder from August 2006 through December 2007. Johnson and Brown opened a business checking account under Johnson Grain Inc.’s name with both men as signatories. Johnson entered into two contracts to sell durum wheat to Agrisource. Agrisource did not receive 15,527.87 bushels of wheat promised by Johnson Grain. Agrisource contacted both Johnson and Brown for two years about the undelivered wheat. Neither party delivered the wheat, so in 2009 Agrisource purchased wheat elsewhere. This resulted in $51,241.97 in damages. In 2010, Agrisource filed a claim alleging breach of the 2007 contract against Brown, Brown’s wife, and Neil Brown, Inc., Johnson, Johnson’s wife, and Johnson’s corporation as defendants. Agrisource alleged that Johnson was an individual doing business as Johnson Grain when he entered into the contract. Johnson appealed the district court’s grant of summary judgment in favor of Agrisource, Inc. The district court held that there was no genuine disputed issue of material fact as to Johnson’s lack of disclosure of his agency and alleged principal. Johnson argued on appeal that Agrisource had notice that Johnson was the principal’s agent because Agrisource should have known Johnson was an agent and disputed issues of fact existed. Upon review, the Supreme Court affirmed the district court’s grant of summary judgment to Agrisource and the denial of Johnson’s third motion to reconsider. However, the Court vacated the district court’s denial of Johnson’s request for I.R.C.P. 60(b) relief and remanded for the district court to analyze Johnson’s third affidavit in the context of Johnson’s request for I.R.C.P. 60(b) relief.
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