Smithfield's tough road ahead on hog waste
Story Date: 7/5/2018

 

Source: POLITICO'S MORNING AGRICULTURE, 7/3/18

Smithfield had hoped this would be a case it could win — it was the one that it selected as part of a class-action involving hundreds of plaintiffs.

But on Friday, a federal jury in North Carolina decided to award $25 million in damages to a couple complaining of miserable living conditions near a hog farm. It's another blow to Smithfield, the company that contracts with hog farms across the state, Pro Ag's Liz Crampton reports.

Second time around: In April, a jury unanimously decided to award North Carolina plaintiffs millions in a nuisance lawsuit against Murphy-Brown, a subsidiary of Smithfield.

That verdict was the first trial in a series of cases in North Carolina filed against the company. About 500 people who live near Smithfield-contracted farms in the eastern part of the state complain that living in proximity to industrial-scale hog farms has ruined their quality of life, forcing them to cope with foul smells, swarms of flies and buzzards.

Money may not be the biggest thing: As Liz reported previously, those suing are unlikely to see much of the millions of dollars mentioned in headlines. The total amount of the verdict will likely be reduced under a state law capping how much plaintiffs can be awarded in punitive damages. For example, the first trial resulted in a more than $50 million verdict that was reduced to $2.5 million per the cap.

What it means: The juries' decisions indicate that plaintiffs have made a strong argument against Smithfield, the world's largest pork producer, as the company prepares to litigate more trials in the class-action lawsuit throughout the year. Smithfield has vowed to appeal the latest decision. It also gives a range of damages that could result from any potential settlements.

North Carolina steps in: Last week, even before the recent verdict, the state's legislature set out to protect what lawmakers see as a vital state industry. Both chambers overrode a veto from the governor to authorize a bill that restricts nuisance lawsuits against farms and other livestock and forestry operations, the News & Observer in Raleigh wrote . Sponsors of the bill, known as the North Carolina Farm Act, worry that verdicts could wreak havoc on the pork industry in a state that has 9 million hogs on nearly 2,300 hog farm operations. North Carolina ranks No. 2 behind Iowa in terms of pork farming.

























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