Farmers who shipped their milk to Dean Foods were sent notices explaining why they had to pay back a portion of the money they received from Dean Foods within the 90 day period prior to the company filing for bankruptcy. This didn’t sit well with the American Farm Bureau Federation. That’s why the bureau chose to send a letter to ASK LLP, the law firm in charge of the letters that were sent out. The AFBF explained to the law firm why they need to withdraw the letters within 10 business days or there will be legal action taken. The bureau gave several reasons as to why ASK LLP should revoke the threatening letters.
- The payments were within the normal course of business.
- The dairy industry is strictly regulated by the government because of the Federal Milk Marketing Order (FMMO)
- According to dairyherd.com, Farm Bureau lawyers said that the letters farmers received were “silent on the more applicable prong of the ordinary course defense under Section 547(c)(2)(B) discussed herein.”
The AFBF also said that if any farmers already paid Dean Foods after receiving a letter, they need to get their money back. If ASK LLP does not withdraw the letters, the AFBF will take further action.
