Pixabay
Pixabay
The Iowa Supreme Court affirmed, reversed and remanded decisions of a district court related to a lawsuit involving the cost of drying and storing grain.
The Boone News-Republican reports the MidWestOne Bank filed the March 2018 lawsuit claiming Heartland Cooperative wasn’t entitled offset the costs associated with the drying and storage of a farmer’s grain within Heartland’s Cambridge facility.
The Story County District Court had ruled in favor of the bank which was awarded almost $80,000.
While the Iowa Supreme Court agreed with the district court in ruling that the bank’s claims are subject to a two-year limitations period, the higher court said there was an improper application of the discovery rule. It remanded the case down to the lower courts in order to reassess the judgment amount.
“All agree that the drying and storage costs were necessary to preserve the corn for sale,” the Supreme Court opinion stated. ”We hold that the discovery rule does not apply. Accordingly, MidWestOne’s judgment must be reduced by [$42,111] withheld by Heartland in transactions occurring more than two years before the lawsuit was filed.”
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