Intermountain Packing, a meat processing plant based in Idaho Falls, is at the center of a legal dispute involving over $2 million worth of cattle.
According to news reports, including East Idaho News, livestock suppliers Dry Creek Dairies LLC and Idaho Magic Milk LLC of Twin Falls, Idaho, and Washington Agri-Investments LLC of Yakima County, Washington, have accused the company of failing to pay for livestock delivered between September 29 and November 9, 2023.
The lawsuit alleges violations of the Packers and Stockyards Act, breach of contract, and unjust enrichment. David Adams, identified as the CEO of Intermountain Packing, is also accused of fraud.
Capital Press notes that plaintiffs claim they delivered livestock valued at over $2.1 million under a pricing agreement of $1.03 to $1.10 per live weight pound.
They suit goes on to allege that Intermountain Packing issued post-dated checks, which were later dishonored following stop-payment requests. Despite repeated assurances from Adams that payment was forthcoming, the plaintiffs contend these promises were knowingly false.
Additional allegations include failure to maintain required records, impairing the plaintiffs’ ability to verify transaction details. The lawsuit also highlights a subsequent order for 528,597 pounds of livestock, which the company reportedly failed to fulfill, resulting in further losses of over $174,000.
The plaintiffs are seeking compensatory damages, pre- and post-judgment interest, and reimbursement for legal fees. They have also requested a jury trial and an order for Intermountain Packing to cease violations of the Packers and Stockyards Act.
Commentors on East Idaho News’ Facebook page have noted their concerns over the situation.
- Karolina Grabowska explained, “This situation is very serious and involves a lot of money and farmers’ livelihoods. Business integrity is critical in any industry, especially the food supply chain. If these allegations are true, affected farmers and suppliers will face significant financial pressure.”
- Another poster, Natalie Fullmer Williams, went on to say, “They owe more than that, because there are a lot of ranchers who sold beef cattle to them and haven’t been paid!! It’s too bad everyone else who hasn’t been paid can’t be part of this lawsuit and get our money as well!! Super disappointed in this company and the way they lied to us and stole our cattle and had no plan to ever pay us.”
- Jesse Fulmer also noted, “They expanded their operation, told us that they sold our meat, we can’t get our meat because it is sold, and but they can’t pay us, and that we just have to wait. It is a slap in the face to the community that wanted to do business with them.”
Intermountain Packing was originally established in 2020 to serve as a beef and bison processing plant. When the company began building, the city agreed to expedite processing and forgive $126,500 in fees and other expenses.
The plant, which Local 8 News took a look inside of in 2023, was at the center of residential complaints about smells coming from the business. According to the plant’s engineer, Paul Greenwood, the plant has the capacity to harvest nearly 500 cattle per day.
The company is reportedly owned by a group of investors as their first startup project. Last year, The Layoff Tracker noted that the plant had laid off 114 employees on December 12.
🚨 LAYOFF ALERT – Idaho 🇺🇸
Intermountain Packing located at 1096 East Iona Road, Idaho Falls, ID 83401 laid off 114 employees on December 12, 2023 as indicated in an Idaho WARN notice. https://t.co/ab9VOcSPcF
— The Layoff Tracker 🚨 (@WhatLayoff) January 5, 2024
