Bayer guilty; $2M to local farmers

Ken Bell of Bell City was awarded $1.95 million in compensatory damages, and fellow rice farmer John Hunter of Essex was awarded $53,336 in compensatory damages. The jury did not award any punitive damages.

At issue was a genetically altered variety of rice that was found to have contaminated rice fields in several states. In August 2006, Bayer CropScience, part of BayerAG in Leverkusen, Germany, found trace amounts of a genetically modified rice, LLRICE601, in commercial rice samples taken in the U.S.A. and Europe. The findings resulted in a several countries halting U.S. rice imports, and new testing regulations were instituted by numerous others. LLRICE 601 was developed between 1998 and 2001 by Aventis CropScience and its predecessor company. In 2002, Aventis CropScience was taken over by Bayer. The rice was developed because it is resistant to Liberty Link herbicide, a product of Bayer. The new strain of rice would have allowed farmers to treat the crop with the herbicide to control weeds and grasses while not impacting the rice itself.

"Discovery of the contamination led to a dramatic drop in U.S. rice prices, as the European Union stopped purchasing U.S. rice," said a statement from the press release. "The farmers suffered economic loss due to the much lower demand for their rice since 2006, when the contaminated rice was discovered."

Farmers from Missouri, Arkansas, Texas, Louisiana and Mississippi filed more than 1,000 lawsuits against Bayer as a result of the loss of overseas markets. A Judicial Panel on Multidistrict Litigation consolidated the cases in December of 2006. Two attorneys, Don Downing of the St. Louis plaintiff law firm Gray, Ritter & Graham, P.C., was named Co-Lead Counsel, Co-Interim Class Counsel and Plaintiff's Liaison Counsel and Adam J. Levitt, a partner in the law firm of Wolf, Haldenstein, Adler, Freeman & Herz LLC, was appointed Plaintiffs' Designated Co-Lead and Co-Interim Class Counsel.

Legal representatives with Bayer filed a motion to dismiss the lawsuits because of a lack of personal jurisdiction. Perry denied that motion, citing subsidiaries in the US as reason for jurisdiction.

The attorneys in the case filed a consolidated class action complaint in 2007. Eastern District of Missouri Judge Catherine Perry denied the class action status, stating, "plaintiffs' claims varied too much to fit as a class action." She set up a series of trials that have been called "Bellwether" cases and the Missouri trial was the first. She also appointed former federal judge Stephen Limbaugh to work with the two sides in reaching a settlement.

Downing maintained during the trial that Bayer's negligence has cost Bell more than $2.2 million. He went on to say that Hunter had quit rice farming all together after suffering losses of $50,000.

Downing said Bell had 6,000 acres planted in rice when the contamination was found in 2006, while Hunter had 500 acres.

"We're very pleased that the jury returned verdicts in favor of our clients, Ken Bell, Johnny Hunter, and their family operations," said Downing. "The verdicts are wonderful news for all rice farmers who were victims of Bayer's conduct."

"The jury spoke loud and clear that Bayer was negligent and is responsible for the damages suffered by Bell and Hunter," Downing stated. "That harm is no different than what many other rice farmers across the South have suffered. We look forward to seeking justice for them in the upcoming trials."

The next bellwether case is set for Jan. 11, 2010 which involved farmers from Arkansas and Mississippi. That trial will also be held in St. Louis.