Grams v. Milk Products, Inc.

699 N.W.2d 167 (2005)

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Nature of the Case

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Facts

Ps have specialized in raising calves. Ps raise them until they are approximately four months old, at which time they resell them. At the time of this dispute, Ps were raising approximately 6000 calves each year. P used a Cargill milk replacer known as 'Half-Time.' This product included medications designed to keep the calves healthy during the first few weeks of their lives, a critical time in which the calves' immune systems are developing. The 'Half-Time' milk replacer was manufactured for Cargill by D. Ps began using this non-medicated version in January 2001. As with the medicated 'Half-Time,' the non-medicated version was sold by Cargill and manufactured by D. The calves were not gaining weight properly and appeared gaunt and hungry. In addition, the mortality rate of the calves tripled, from an average of 9 percent before the new replacer was used to a high of 34 percent after the new replacer was introduced. Ps discontinued using the non-medicated 'Half-Time.' Ps believed that poor nutritional content in the non-medicated replacer had damaged the calves' immune systems, which in turn caused the poor growth of the calves and their higher mortality rate. Ps sued D alleging (1) breach of implied warranty; (2) strict liability tort; (3) negligence; (4) intentional misrepresentation; and (5) strict responsibility misrepresentation. The court granted summary judgment on all four tort claims, finding that those claims were barred by the economic loss doctrine. The circuit court also granted summary judgment to D on Ps' contract claim because there was no privity between Ps and D. The court of appeals affirmed. Ps appealed.