Audit sought in seeds suit

A motion to compel production of audit reports in the grass seed contract suit has been filed against the Scott’s Company. Spokane Attorney Karl Kime filed the motion on behalf of Dye Seed Co., Pomeroy, one of the defendants in a suit filed by grass seed growers in this area. The motion contends The Scott Co. has cited their audit reports in its court motions, but “no substantive reports” on the audit have been made available to Dye.

Scotts, Dye and Seeds, Inc., of Tekoa are co-defendants in the suit. Scotts has contended growers invalidated 2010 contracts by delivering seed from fields which were not included to production contracts, a practice described as “stuffing.” Scott conducted audits of records of the two seed companies in a move to support its argument.

Stephen Phillabaum, an attorney in the same firm with Kime, March 21 also filed a formal answer to the growers’ suit on behalf of Dye. The answer contends the supply agreements expressly state any payments due growers from Dye are conditioned on payments from Scotts to Dye.

Also, an answer was filed by Pullman Attorney Tim Esser Wednesday on behalf of Seeds, Inc. and included the same contention, that Seeds is not required to pay growers until Scotts pays Seeds.

Esser also filed an answer to a later suit filed on behalf of grass seedgrowers in the Camas Prairie area. Scotts and Seeds are co-defendants in that suit.

An April 1 hearing date has been set on Kime’s motion for the court to order Scotts to provide a copy of its audit of the Dye Seeds books.