Judge rules e-mails show Scott's backed Kentucky Bluegrass bonus

After hearing more than an hour of arguments May 3, Superior Judge David Frazier ruled evidence in the Millhorn Kentucky Bluegrass suit indicated Scotts Company executives had authorized a 20 cent per pound price bump which was offered to growers as an incentive to contract for seed production.

The judge ruled e-mail messages between Scotts agents and employees of Seeds Inc., Tekoa, qualified as undisputed evidence that Scotts had authorized the 20-cent bump in Kentucky Bluegrass contracts as an incentive to sign growers before May of 2008.

Scotts attorney Kevin Folawn of Seattle had argued Scotts should not be held responsible for the 20-cent price bump because it was never authorized under terms of a supply agreement signed by Scotts and Seeds.

Tim Esser of Pullman, representing Seeds, said the e-mails showed Scotts and Seeds agents debating on the status of the 20-cent bonus in the months leading up to May 1, 2008, when Kevin Turner of Scotts send out a “letter of understanding” which led to signing growers for future production contracts with the bonus. Esser noted Scoots paid the 20-cent bonus for 2008 seed contracted in 2007 but then attempted to back out of the multi-year contracts when the market for grass seed dropped when the recession hit. He argued the 20-cent price bump was offered as an incentive to sign growers for KBG seed production when they could have considered other crops.

Esser had asked the court, in a motion for a partial summary judgment, to order Scotts to play sums alleged due as a result of the bonus and said he could present a list to the court in two weeks of the alleged amounts due on the contracts for 2009 and 2010.

Esser argued the facts related to the bonus offer were sufficient to take it out of the dispute before a jury trial by awarding a partial summary judgment.

Judge Frazier said he needed more time to study Esser’s motion and vowed to issue a ruling May 17 when another pre-trial hearing is slated on the massive civil suit which was filed by area growers against Scotts, Seeds and Dye Seed Co. of Pomeroy.

Spokane Attorney Richard Kuhling, representing the growers who initiated the suit, sided with Esser’s argument and pointed out wording and omissions in the Scott-Seeds agreement which Folawn had used in his argument.

Kuhling also filed a motion asking the court to deny the partial summary judgment motion filed by Dye, the subject of the May 17 hearing. He argued the court should instead grant the growers group involved in the Dye contracts a partial summary judgment for the bonus payment on their 2009 and 2010 harvests. In part of his argument, Kuhling urged the court to review the arguments and decisions made in court last Thursday.

The civil suit is now scheduled to begin Oct. 15.