OK Foods wins judgment in breach of contract suit filed by Oklahoma farmer

Fort Smith-based OK Foods has won in a recent breach of contract suit filed against the company by poultry grower Earl Oldham of Stigler, Okla.

Oldham sued the company for $330,000 in lost profits as the result of OK Foods severing ties due to animal welfare concerns. The company terminated the agreement just over a year into the three-year deal following the drowning deaths of an estimated 19,000 broiler chickens during a May 2015 rainstorm. It was the second mass die-off in five years blamed on groundwater flooding at the farm.

After realizing the water was rising in his three poultry houses, Oldham requested the company remove all chickens from his property. Upon arrival, a company representative discovered many of the chickens had already died. OK Foods took immediate steps to relocate surviving chickens to a nearby poultry farm. After OK Foods notified Oldham his contract would be terminated, the grower filed the breach of contract suit.

The lawsuit dismissal follows a summary judgment motion filed by OK Foods’ attorney Clayton Bailey of Dallas’ Bailey Brauer. In granting the summary judgment, the court threw out Oldham’s claims.

”Mr. Oldham in essence moved to terminate the contract with his demands to remove the broilers from the farm, something OK Foods was more than willing to oblige,” said Bailey.

He noted the swift termination of the contract was in accordance with animal welfare policies implemented by OK Foods CEO and President Trent Goins, Vice President of Live Operations Gary Hogue and Director of Broiler and Hatchery Operations Kelly Garris.

“OK Foods did not agree with the conditions found at this farm, and it was not something that could be tolerated. The operator’s own words, actions and inactions in effect invalidated his grower agreement. OK Foods simply formalized that termination,” Bailey said. “Animal welfare is something OK Foods takes seriously. OK Foods’ live operations team is ensuring that OK Foods’ chickens are raised ethically and efficiently, and that the company’s customers receive top-quality products.”